Analysis of Solvency Ratios
Solvency ratios also known as long-term debt ratios measure a company ability to meet long-term obligations.
Solvency Ratios (Summary)
Diamondback Energy Inc., solvency ratios
Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31).
| Solvency ratio | Description | The company |
|---|---|---|
| Debt to equity ratio | A solvency ratio calculated as total debt divided by total shareholders’ equity. | Diamondback Energy Inc. debt to equity ratio deteriorated from 2019 to 2020 but then slightly improved from 2020 to 2021. |
| Debt to capital ratio | A solvency ratio calculated as total debt divided by total debt plus shareholders’ equity. | Diamondback Energy Inc. debt to capital ratio deteriorated from 2019 to 2020 but then slightly improved from 2020 to 2021. |
| Debt to assets ratio | A solvency ratio calculated as total debt divided by total assets. | Diamondback Energy Inc. debt to assets ratio deteriorated from 2019 to 2020 but then slightly improved from 2020 to 2021. |
| Financial leverage ratio | A solvency ratio calculated as total assets divided by total shareholders’ equity. | Diamondback Energy Inc. financial leverage ratio increased from 2019 to 2020 but then slightly decreased from 2020 to 2021. |
| Solvency ratio | Description | The company |
|---|---|---|
| Interest coverage ratio | A solvency ratio calculated as EBIT divided by interest payments. | Diamondback Energy Inc. interest coverage ratio deteriorated from 2019 to 2020 but then improved from 2020 to 2021 exceeding 2019 level. |
Debt to Equity
Diamondback Energy Inc., debt to equity calculation, comparison to benchmarks
| Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Current maturities of long-term debt | 45) | 191) | —) | —) | —) | |
| Long-term debt, excluding current maturities | 6,642) | 5,624) | 5,371) | 4,464) | 1,477) | |
| Total debt | 6,687) | 5,815) | 5,371) | 4,464) | 1,477) | |
| Total Diamondback Energy, Inc. stockholders’ equity | 12,088) | 8,794) | 13,249) | 13,699) | 5,255) | |
| Solvency Ratio | ||||||
| Debt to equity1 | 0.55 | 0.66 | 0.41 | 0.33 | 0.28 | |
| Benchmarks | ||||||
| Debt to Equity, Competitors2 | ||||||
| Chevron Corp. | 0.23 | 0.34 | 0.19 | — | — | |
| ConocoPhillips | 0.44 | 0.51 | 0.43 | — | — | |
| Exxon Mobil Corp. | 0.28 | 0.43 | 0.24 | — | — | |
| Marathon Petroleum Corp. | 0.97 | 1.42 | 0.86 | — | — | |
| Occidental Petroleum Corp. | 1.46 | 1.95 | 1.13 | — | — | |
| Valero Energy Corp. | 0.75 | 0.78 | 0.44 | — | — | |
| Debt to Equity, Sector | ||||||
| Oil, Gas & Consumable Fuels | 0.40 | 0.55 | 0.36 | — | — | |
| Debt to Equity, Industry | ||||||
| Energy | 0.42 | 0.58 | 0.37 | — | — | |
Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31).
1 2021 Calculation
Debt to equity = Total debt ÷ Total Diamondback Energy, Inc. stockholders’ equity
= 6,687 ÷ 12,088 = 0.55
2 Click competitor name to see calculations.
| Solvency ratio | Description | The company |
|---|---|---|
| Debt to equity ratio | A solvency ratio calculated as total debt divided by total shareholders’ equity. | Diamondback Energy Inc. debt to equity ratio deteriorated from 2019 to 2020 but then slightly improved from 2020 to 2021. |
Debt to Capital
Diamondback Energy Inc., debt to capital calculation, comparison to benchmarks
| Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Current maturities of long-term debt | 45) | 191) | —) | —) | —) | |
| Long-term debt, excluding current maturities | 6,642) | 5,624) | 5,371) | 4,464) | 1,477) | |
| Total debt | 6,687) | 5,815) | 5,371) | 4,464) | 1,477) | |
| Total Diamondback Energy, Inc. stockholders’ equity | 12,088) | 8,794) | 13,249) | 13,699) | 5,255) | |
| Total capital | 18,775) | 14,609) | 18,620) | 18,164) | 6,732) | |
| Solvency Ratio | ||||||
| Debt to capital1 | 0.36 | 0.40 | 0.29 | 0.25 | 0.22 | |
| Benchmarks | ||||||
| Debt to Capital, Competitors2 | ||||||
| Chevron Corp. | 0.18 | 0.25 | 0.16 | — | — | |
| ConocoPhillips | 0.31 | 0.34 | 0.30 | — | — | |
| Exxon Mobil Corp. | 0.22 | 0.30 | 0.20 | — | — | |
| Marathon Petroleum Corp. | 0.49 | 0.59 | 0.46 | — | — | |
| Occidental Petroleum Corp. | 0.59 | 0.66 | 0.53 | — | — | |
| Valero Energy Corp. | 0.43 | 0.44 | 0.31 | — | — | |
| Debt to Capital, Sector | ||||||
| Oil, Gas & Consumable Fuels | 0.29 | 0.36 | 0.26 | — | — | |
| Debt to Capital, Industry | ||||||
| Energy | 0.30 | 0.37 | 0.27 | — | — | |
Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31).
1 2021 Calculation
Debt to capital = Total debt ÷ Total capital
= 6,687 ÷ 18,775 = 0.36
2 Click competitor name to see calculations.
| Solvency ratio | Description | The company |
|---|---|---|
| Debt to capital ratio | A solvency ratio calculated as total debt divided by total debt plus shareholders’ equity. | Diamondback Energy Inc. debt to capital ratio deteriorated from 2019 to 2020 but then slightly improved from 2020 to 2021. |
Debt to Assets
Diamondback Energy Inc., debt to assets calculation, comparison to benchmarks
| Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Current maturities of long-term debt | 45) | 191) | —) | —) | —) | |
| Long-term debt, excluding current maturities | 6,642) | 5,624) | 5,371) | 4,464) | 1,477) | |
| Total debt | 6,687) | 5,815) | 5,371) | 4,464) | 1,477) | |
| Total assets | 22,898) | 17,619) | 23,531) | 21,596) | 7,771) | |
| Solvency Ratio | ||||||
| Debt to assets1 | 0.29 | 0.33 | 0.23 | 0.21 | 0.19 | |
| Benchmarks | ||||||
| Debt to Assets, Competitors2 | ||||||
| Chevron Corp. | 0.13 | 0.18 | 0.11 | — | — | |
| ConocoPhillips | 0.22 | 0.25 | 0.21 | — | — | |
| Exxon Mobil Corp. | 0.14 | 0.20 | 0.13 | — | — | |
| Marathon Petroleum Corp. | 0.30 | 0.37 | 0.29 | — | — | |
| Occidental Petroleum Corp. | 0.39 | 0.45 | 0.35 | — | — | |
| Valero Energy Corp. | 0.24 | 0.28 | 0.18 | — | — | |
| Debt to Assets, Sector | ||||||
| Oil, Gas & Consumable Fuels | 0.19 | 0.25 | 0.18 | — | — | |
| Debt to Assets, Industry | ||||||
| Energy | 0.20 | 0.25 | 0.18 | — | — | |
Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31).
1 2021 Calculation
Debt to assets = Total debt ÷ Total assets
= 6,687 ÷ 22,898 = 0.29
2 Click competitor name to see calculations.
| Solvency ratio | Description | The company |
|---|---|---|
| Debt to assets ratio | A solvency ratio calculated as total debt divided by total assets. | Diamondback Energy Inc. debt to assets ratio deteriorated from 2019 to 2020 but then slightly improved from 2020 to 2021. |
Financial Leverage
Diamondback Energy Inc., financial leverage calculation, comparison to benchmarks
| Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Total assets | 22,898) | 17,619) | 23,531) | 21,596) | 7,771) | |
| Total Diamondback Energy, Inc. stockholders’ equity | 12,088) | 8,794) | 13,249) | 13,699) | 5,255) | |
| Solvency Ratio | ||||||
| Financial leverage1 | 1.89 | 2.00 | 1.78 | 1.58 | 1.48 | |
| Benchmarks | ||||||
| Financial Leverage, Competitors2 | ||||||
| Chevron Corp. | 1.72 | 1.82 | 1.65 | — | — | |
| ConocoPhillips | 2.00 | 2.10 | 2.02 | — | — | |
| Exxon Mobil Corp. | 2.01 | 2.12 | 1.89 | — | — | |
| Marathon Petroleum Corp. | 3.26 | 3.84 | 2.93 | — | — | |
| Occidental Petroleum Corp. | 3.69 | 4.31 | 3.19 | — | — | |
| Valero Energy Corp. | 3.14 | 2.75 | 2.47 | — | — | |
| Financial Leverage, Sector | ||||||
| Oil, Gas & Consumable Fuels | 2.12 | 2.25 | 2.02 | — | — | |
| Financial Leverage, Industry | ||||||
| Energy | 2.15 | 2.29 | 2.04 | — | — | |
Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31).
1 2021 Calculation
Financial leverage = Total assets ÷ Total Diamondback Energy, Inc. stockholders’ equity
= 22,898 ÷ 12,088 = 1.89
2 Click competitor name to see calculations.
| Solvency ratio | Description | The company |
|---|---|---|
| Financial leverage ratio | A solvency ratio calculated as total assets divided by total shareholders’ equity. | Diamondback Energy Inc. financial leverage ratio increased from 2019 to 2020 but then slightly decreased from 2020 to 2021. |
Interest Coverage
Diamondback Energy Inc., interest coverage calculation, comparison to benchmarks
| Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Net income (loss) attributable to Diamondback Energy, Inc. | 2,182) | (4,517) | 240) | 846) | 482) | |
| Add: Net income attributable to noncontrolling interest | 94) | (155) | 75) | 99) | 34) | |
| Add: Income tax expense | 631) | (1,104) | 47) | 168) | (20) | |
| Add: Interest expense, less capitalized interest | 189) | 195) | 169) | 77) | 39) | |
| Earnings before interest and tax (EBIT) | 3,096) | (5,581) | 531) | 1,191) | 536) | |
| Solvency Ratio | ||||||
| Interest coverage1 | 16.38 | -28.62 | 3.14 | 15.38 | 13.89 | |
| Benchmarks | ||||||
| Interest Coverage, Competitors2 | ||||||
| Chevron Corp. | 31.39 | -9.69 | 7.94 | — | — | |
| ConocoPhillips | 15.38 | -2.90 | 13.24 | — | — | |
| Exxon Mobil Corp. | 33.98 | -23.94 | 25.16 | — | — | |
| Marathon Petroleum Corp. | 3.22 | -9.21 | 4.50 | — | — | |
| Occidental Petroleum Corp. | 3.30 | -10.03 | 1.17 | — | — | |
| Valero Energy Corp. | 3.56 | -2.57 | 8.68 | — | — | |
| Interest Coverage, Sector | ||||||
| Oil, Gas & Consumable Fuels | 13.22 | -10.84 | 9.35 | — | — | |
| Interest Coverage, Industry | ||||||
| Energy | 12.58 | -11.55 | 6.66 | — | — | |
Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31).
1 2021 Calculation
Interest coverage = EBIT ÷ Interest expense
= 3,096 ÷ 189 = 16.38
2 Click competitor name to see calculations.
| Solvency ratio | Description | The company |
|---|---|---|
| Interest coverage ratio | A solvency ratio calculated as EBIT divided by interest payments. | Diamondback Energy Inc. interest coverage ratio deteriorated from 2019 to 2020 but then improved from 2020 to 2021 exceeding 2019 level. |