Analysis of Long-term (Investment) Activity Ratios
Activity ratios measure how efficiently a company performs day-to-day tasks, such us the collection of receivables and management of inventory.
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- Common-Size Balance Sheet: Assets
- Common-Size Balance Sheet: Liabilities and Stockholders’ Equity
- Common Stock Valuation Ratios
- Enterprise Value (EV)
- Capital Asset Pricing Model (CAPM)
- Dividend Discount Model (DDM)
- Selected Financial Data since 2012
- Operating Profit Margin since 2012
- Total Asset Turnover since 2012
- Price to Sales (P/S) since 2012
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Long-term Activity Ratios (Summary)
Diamondback Energy Inc., long-term (investment) activity ratios
| Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | ||
|---|---|---|---|---|---|---|
| Net fixed asset turnover | ||||||
| Total asset turnover | ||||||
| Equity turnover |
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).
- Net Fixed Asset Turnover
- The net fixed asset turnover exhibited fluctuating behavior over the analyzed period. It began at 0.16 in 2017, declined to 0.10 in 2018, rose again to 0.18 in 2019, slightly decreased to 0.17 in 2020, and then experienced a significant increase to 0.33 in 2021. This indicates an overall improvement in the efficiency of using net fixed assets to generate revenue, particularly in the most recent year.
- Total Asset Turnover
- The total asset turnover ratio followed a similar pattern to net fixed asset turnover. It started at 0.15 in 2017, dropped to 0.10 in 2018, increased to 0.17 in 2019, slightly declined to 0.16 in 2020, and then rose markedly to 0.29 in 2021. This suggests a consistent trend of enhanced utilization of assets for revenue generation, with notable improvement in 2021.
- Equity Turnover
- Equity turnover showed a generally upward trend throughout the period. Beginning at 0.23 in 2017, it decreased to 0.16 in 2018, then increased steadily to 0.29 in 2019, 0.31 in 2020, and further to 0.56 in 2021. This pattern reflects an improving ability to generate sales from shareholders' equity, with significant acceleration in the last year.
- Overall Insights
- All turnover ratios started with a decline in 2018, followed by recovery and growth in subsequent years, culminating in substantial increases in 2021. This trend points to improved operational efficiency and asset utilization over time, especially in 2021, indicating potentially enhanced management effectiveness and revenue generation capacity in relation to assets and equity.
Net Fixed Asset Turnover
Diamondback Energy Inc., net fixed asset turnover 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) | ||||||
| Revenue from contracts with customers | ||||||
| Property and equipment, net | ||||||
| Long-term Activity Ratio | ||||||
| Net fixed asset turnover1 | ||||||
| Benchmarks | ||||||
| Net Fixed Asset Turnover, Competitors2 | ||||||
| Chevron Corp. | ||||||
| ConocoPhillips | ||||||
| Exxon Mobil Corp. | ||||||
| Occidental Petroleum Corp. | ||||||
| Net Fixed Asset Turnover, Sector | ||||||
| Oil, Gas & Consumable Fuels | ||||||
| Net Fixed Asset Turnover, Industry | ||||||
| Energy | ||||||
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
Net fixed asset turnover = Revenue from contracts with customers ÷ Property and equipment, net
= ÷ =
2 Click competitor name to see calculations.
- Revenue from contracts with customers
- The revenue exhibited significant growth from 2017 to 2019, increasing from $1,186 million to $3,887 million. A decline occurred in 2020, with revenue reducing to $2,756 million. However, this was followed by a strong rebound in 2021, reaching $6,747 million, the highest level in the period analyzed.
- Property and equipment, net
- Net property and equipment values showed a considerable increase between 2017 and 2018, rising sharply from $7,344 million to $20,372 million. After a smaller increase to $21,835 million in 2019, the asset base declined to $16,214 million in 2020. In 2021, the level recovered moderately to $20,619 million. The fluctuations suggest changes in capital investments or asset disposals during these years.
- Net fixed asset turnover
- The net fixed asset turnover, representing the efficiency of fixed assets in generating revenue, decreased from 0.16 in 2017 to 0.10 in 2018. It then improved to 0.18 in 2019 and remained relatively stable at 0.17 in 2020. A substantial increase to 0.33 occurred in 2021, indicating much better utilization of fixed assets to generate revenue during that year.
Total Asset Turnover
Diamondback Energy Inc., total asset turnover calculation, comparison to benchmarks
| Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Revenue from contracts with customers | ||||||
| Total assets | ||||||
| Long-term Activity Ratio | ||||||
| Total asset turnover1 | ||||||
| Benchmarks | ||||||
| Total Asset Turnover, Competitors2 | ||||||
| Chevron Corp. | ||||||
| ConocoPhillips | ||||||
| Exxon Mobil Corp. | ||||||
| Occidental Petroleum Corp. | ||||||
| Total Asset Turnover, Sector | ||||||
| Oil, Gas & Consumable Fuels | ||||||
| Total Asset Turnover, Industry | ||||||
| Energy | ||||||
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
Total asset turnover = Revenue from contracts with customers ÷ Total assets
= ÷ =
2 Click competitor name to see calculations.
- Revenue from contracts with customers
- The revenue figures demonstrate a notable upward trend over the period analyzed. Starting at 1,186 million USD in 2017, revenue nearly doubled by 2018 to 2,130 million USD. This was followed by a substantial increase to 3,887 million USD in 2019. However, there was a decline in 2020, with revenue dropping to 2,756 million USD. By 2021, revenue surged significantly to 6,747 million USD, representing the highest value in the period and indicating strong recovery and growth.
- Total assets
- Total assets showed a sharp increase from 7,771 million USD in 2017 to 21,596 million USD in 2018, more than doubling within a year. The asset base then continued to grow moderately to 23,531 million USD in 2019 before contracting to 17,619 million USD in 2020. In 2021, total assets expanded again to 22,898 million USD, reflecting a partial recovery and overall increased scale compared to the initial year.
- Total asset turnover
- The total asset turnover ratio, which measures the efficiency in using assets to generate revenue, started at a relatively low 0.15 in 2017 and dropped to 0.10 in 2018 despite asset growth, indicating reduced efficiency. It recovered to 0.17 in 2019 and slightly decreased to 0.16 in 2020. A considerable improvement occurred in 2021 with the ratio rising to 0.29, suggesting the company became significantly more effective in utilizing its assets to generate revenue by the end of the period.
Equity Turnover
Diamondback Energy Inc., equity turnover 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) | ||||||
| Revenue from contracts with customers | ||||||
| Total Diamondback Energy, Inc. stockholders’ equity | ||||||
| Long-term Activity Ratio | ||||||
| Equity turnover1 | ||||||
| Benchmarks | ||||||
| Equity Turnover, Competitors2 | ||||||
| Chevron Corp. | ||||||
| ConocoPhillips | ||||||
| Exxon Mobil Corp. | ||||||
| Occidental Petroleum Corp. | ||||||
| Equity Turnover, Sector | ||||||
| Oil, Gas & Consumable Fuels | ||||||
| Equity Turnover, Industry | ||||||
| Energy | ||||||
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
Equity turnover = Revenue from contracts with customers ÷ Total Diamondback Energy, Inc. stockholders’ equity
= ÷ =
2 Click competitor name to see calculations.
The financial data reveals significant variations across the analyzed periods.
- Revenue from contracts with customers
- The revenue exhibited an overall increasing trend from 2017 through 2021. Starting at 1,186 million US dollars in 2017, the revenue almost doubled in 2018 to 2,130 million. It continued to rise sharply to 3,887 million in 2019 but saw a decline in 2020 to 2,756 million. However, by 2021, revenue sharply increased to 6,747 million, the highest value in the timeline analyzed, indicating strong recovery and growth.
- Total Diamondback Energy, Inc. stockholders’ equity
- Shareholders’ equity showed a marked increase from 5,255 million in 2017 to 13,699 million in 2018, reflecting substantial capital growth or reinvestment. It then slightly decreased to 13,249 million in 2019 and declined more notably to 8,794 million in 2020. The equity rebounded to 12,088 million in 2021, suggesting recovery but still below the 2018 peak.
- Equity turnover ratio
- The equity turnover ratio, indicative of revenue generated per unit of equity, fluctuated significantly. It decreased from 0.23 in 2017 to 0.16 in 2018, reflecting less efficient use of equity relative to revenue. Subsequently, it improved to 0.29 in 2019 and slightly increased to 0.31 in 2020. A notable jump to 0.56 in 2021 suggests a substantially enhanced utilization of shareholders’ equity to generate revenue.