Analysis of Long-term (Investment) Activity Ratios
Quarterly Data
Activity ratios measure how efficiently a company performs day-to-day tasks, such us the collection of receivables and management of inventory.
Long-term Activity Ratios (Summary)
Diamondback Energy Inc., long-term (investment) activity ratios (quarterly data)
Based on: 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31), 10-K (reporting date: 2018-12-31), 10-Q (reporting date: 2018-09-30), 10-Q (reporting date: 2018-06-30), 10-Q (reporting date: 2018-03-31).
The financial ratios exhibit several notable trends over the analyzed periods, reflecting changes in operational efficiency and asset utilization.
- Net Fixed Asset Turnover
- This ratio shows a relatively stable performance in early periods, fluctuating modestly from 0.18 to 0.22 between the first quarter of 2018 and the third quarter of 2018, followed by a decline to 0.1 by the end of 2018. From 2019 onward, there is a gradual recovery and steady upward trend, reaching 0.44 in the third quarter of 2022. This suggests improving efficiency in generating sales from fixed assets over time, with a particularly strong enhancement in the final periods reported.
- Total Asset Turnover
- The total asset turnover ratio follows a somewhat similar pattern to net fixed asset turnover but starts from a slightly lower base and exhibits less pronounced volatility. After an initial range of 0.17 to 0.19 in early 2018, the ratio declines to 0.10 at year-end 2018, indicating reduced asset efficiency. A gradual increase is apparent from 2019 through 2022, culminating in a value of 0.40 in the third quarter of 2022. This reflects ongoing improvements in how effectively the company utilizes its total assets to generate revenue.
- Equity Turnover
- Equity turnover displays a pattern of greater variability but generally positive momentum. Starting from 0.26 in the first quarter of 2018, it rises to 0.32 by the third quarter of 2018, before dropping sharply to 0.16 by the end of 2018. Post-2018, the ratio steadily escalates, reaching the highest recorded value of 0.69 in the third quarter of 2022. This indicates increasing effectiveness in using shareholders' equity to drive sales and may reflect stronger financial leverage or improved profitability strategies over the observed periods.
Overall, the ratios indicate a marked recovery and improvement in asset and equity utilization following a dip towards the end of 2018. The steady upward trends through 2021 and into 2022 suggest enhanced operational efficiency and more effective deployment of both fixed assets and equity to generate revenue.
Net Fixed Asset Turnover
Diamondback Energy Inc., net fixed asset turnover calculation (quarterly data)
| Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | Dec 31, 2018 | Sep 30, 2018 | Jun 30, 2018 | Mar 31, 2018 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||||||||||||||||||||
| Revenue from contracts with customers | 2,417) | 2,752) | 2,389) | 2,011) | 1,897) | 1,667) | 1,172) | 754) | 707) | 412) | 883) | 1,089) | 956) | 1,000) | 842) | 621) | 527) | 515) | 467) | ||||||
| Property and equipment, net | 21,903) | 21,369) | 21,108) | 20,619) | 20,406) | 20,419) | 20,352) | 16,214) | 17,435) | 18,927) | 21,420) | 21,835) | 22,043) | 21,603) | 21,047) | 20,372) | 8,715) | 8,343) | 7,751) | ||||||
| Long-term Activity Ratio | |||||||||||||||||||||||||
| Net fixed asset turnover1 | 0.44 | 0.42 | 0.38 | 0.33 | 0.27 | 0.21 | 0.15 | 0.17 | 0.18 | 0.18 | 0.18 | 0.18 | 0.16 | 0.14 | 0.12 | 0.10 | 0.22 | 0.20 | 0.18 | ||||||
| Benchmarks | |||||||||||||||||||||||||
| Net Fixed Asset Turnover, Competitors2 | |||||||||||||||||||||||||
| Chevron Corp. | 1.58 | 1.43 | 1.22 | 1.06 | 0.91 | 0.77 | 0.62 | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
| ConocoPhillips | 1.18 | 1.02 | 0.83 | 0.71 | 0.64 | 0.51 | 0.39 | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
| Exxon Mobil Corp. | 1.90 | 1.68 | 1.44 | 1.28 | 1.10 | 0.96 | 0.81 | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
Based on: 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31), 10-K (reporting date: 2018-12-31), 10-Q (reporting date: 2018-09-30), 10-Q (reporting date: 2018-06-30), 10-Q (reporting date: 2018-03-31).
1 Q3 2022 Calculation
Net fixed asset turnover
= (Revenue from contracts with customersQ3 2022
+ Revenue from contracts with customersQ2 2022
+ Revenue from contracts with customersQ1 2022
+ Revenue from contracts with customersQ4 2021)
÷ Property and equipment, net
= (2,417 + 2,752 + 2,389 + 2,011)
÷ 21,903 = 0.44
2 Click competitor name to see calculations.
The financial data reveals several notable trends over the examined periods. Revenue from contracts with customers exhibits a general upward trajectory despite fluctuations. From March 2018 to December 2019, revenue steadily increased from $467 million to a peak of $1,089 million. Subsequently, a significant decline is observed in the first half of 2020, with revenue falling to $412 million by June 2020, which may reflect external challenges during that timeframe. Recovery is evident from the third quarter of 2020 onwards, culminating in a substantial rise to $2,752 million by June 2022, followed by a slight decrease to $2,417 million in the last quarter reported.
- Revenue from contracts with customers
- Shows overall growth with a seasonal dip in early 2020, followed by a strong recovery and peak performance in mid-2022.
- Property and equipment, net
- Increases significantly through 2018 and 2019 with a marked drop in 2020, then recovers moderately by late 2022, indicating investment cycles or asset disposals.
- Net fixed asset turnover ratio
- Initially declines sharply during rapid asset base expansion, stabilizes in 2019-2020, and improves significantly from 2021, reflecting better asset efficiency.
Total Asset Turnover
Diamondback Energy Inc., total asset turnover calculation (quarterly data)
| Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | Dec 31, 2018 | Sep 30, 2018 | Jun 30, 2018 | Mar 31, 2018 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||||||||||||||||||||
| Revenue from contracts with customers | 2,417) | 2,752) | 2,389) | 2,011) | 1,897) | 1,667) | 1,172) | 754) | 707) | 412) | 883) | 1,089) | 956) | 1,000) | 842) | 621) | 527) | 515) | 467) | ||||||
| Total assets | 23,843) | 23,448) | 23,331) | 22,898) | 22,639) | 22,335) | 21,996) | 17,619) | 18,760) | 20,337) | 23,386) | 23,531) | 23,553) | 23,171) | 22,268) | 21,596) | 9,807) | 8,954) | 8,225) | ||||||
| Long-term Activity Ratio | |||||||||||||||||||||||||
| Total asset turnover1 | 0.40 | 0.39 | 0.34 | 0.29 | 0.24 | 0.19 | 0.14 | 0.16 | 0.16 | 0.16 | 0.17 | 0.17 | 0.15 | 0.13 | 0.11 | 0.10 | 0.19 | 0.19 | 0.17 | ||||||
| Benchmarks | |||||||||||||||||||||||||
| Total Asset Turnover, Competitors2 | |||||||||||||||||||||||||
| Chevron Corp. | 0.87 | 0.80 | 0.71 | 0.65 | 0.56 | 0.48 | 0.40 | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
| ConocoPhillips | 0.79 | 0.70 | 0.58 | 0.51 | 0.41 | 0.34 | 0.27 | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
| Exxon Mobil Corp. | 1.05 | 0.96 | 0.86 | 0.82 | 0.72 | 0.64 | 0.54 | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
Based on: 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31), 10-K (reporting date: 2018-12-31), 10-Q (reporting date: 2018-09-30), 10-Q (reporting date: 2018-06-30), 10-Q (reporting date: 2018-03-31).
1 Q3 2022 Calculation
Total asset turnover
= (Revenue from contracts with customersQ3 2022
+ Revenue from contracts with customersQ2 2022
+ Revenue from contracts with customersQ1 2022
+ Revenue from contracts with customersQ4 2021)
÷ Total assets
= (2,417 + 2,752 + 2,389 + 2,011)
÷ 23,843 = 0.40
2 Click competitor name to see calculations.
The quarterly financial performance exhibits notable trends in revenue, total assets, and asset efficiency, reflecting both operational dynamics and investment activity over the observed periods.
- Revenue from contracts with customers
- Revenue demonstrated a progressive upward trajectory from March 2018 through September 2019, increasing from $467 million to a peak of $1,000 million in June 2019, followed by a slight dip to $956 million in September 2019 and recovery to $1,089 million by December 2019. A significant contraction occurred in 2020 amid external pressures, evidenced by a drop to as low as $412 million in June 2020. This was followed by a strong rebound in subsequent quarters, culminating in a robust peak of $2,011 million by December 2021. The growth trend continued into 2022, with revenue reaching $2,752 million in June 2022 before a moderate decline to $2,417 million in September 2022.
- Total assets
- Total assets remained relatively stable around the $8,000 to $10,000 million range from early 2018 until the end of 2018, when a significant jump to $21,596 million occurred, possibly reflecting acquisitions or large capital investments. From 2019 onward, assets showed gradual but steady increases, fluctuating between $22,000 million and $23,843 million by September 2022, indicating stable asset base expansion with no major asset disposals or shrinkage during this period.
- Total asset turnover ratio
- The asset turnover ratio started at 0.17 in March 2018, exhibiting slight fluctuations but generally trending downward to 0.10 by December 2018, which correlates with the surge in total assets and comparatively slower revenue growth in that quarter. From 2019, the ratio shows a consistent and marked improvement, rising from 0.11 in March 2019 to 0.40 by September 2022. This indicates progressively enhanced efficiency in utilizing assets to generate revenue, peaking alongside the highest revenue periods in 2021 and 2022. The increasing asset turnover ratio suggests effective operational leverage and improved asset management strategies over time.
Equity Turnover
Diamondback Energy Inc., equity turnover calculation (quarterly data)
| Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | Dec 31, 2018 | Sep 30, 2018 | Jun 30, 2018 | Mar 31, 2018 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||||||||||||||||||||
| Revenue from contracts with customers | 2,417) | 2,752) | 2,389) | 2,011) | 1,897) | 1,667) | 1,172) | 754) | 707) | 412) | 883) | 1,089) | 956) | 1,000) | 842) | 621) | 527) | 515) | 467) | ||||||
| Total Diamondback Energy, Inc. stockholders’ equity | 13,843) | 13,316) | 12,743) | 12,088) | 11,483) | 10,926) | 10,673) | 8,794) | 9,552) | 10,714) | 12,826) | 13,249) | 14,050) | 14,004) | 13,773) | 13,699) | 5,933) | 5,631) | 5,417) | ||||||
| Long-term Activity Ratio | |||||||||||||||||||||||||
| Equity turnover1 | 0.69 | 0.68 | 0.62 | 0.56 | 0.48 | 0.39 | 0.29 | 0.31 | 0.32 | 0.31 | 0.31 | 0.29 | 0.24 | 0.21 | 0.18 | 0.16 | 0.32 | 0.30 | 0.26 | ||||||
| Benchmarks | |||||||||||||||||||||||||
| Equity Turnover, Competitors2 | |||||||||||||||||||||||||
| Chevron Corp. | 1.43 | 1.34 | 1.21 | 1.12 | 0.99 | 0.87 | 0.73 | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
| ConocoPhillips | 1.53 | 1.30 | 1.09 | 1.01 | 0.82 | 0.66 | 0.52 | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
| Exxon Mobil Corp. | 2.08 | 1.99 | 1.81 | 1.64 | 1.50 | 1.35 | 1.15 | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
Based on: 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31), 10-K (reporting date: 2018-12-31), 10-Q (reporting date: 2018-09-30), 10-Q (reporting date: 2018-06-30), 10-Q (reporting date: 2018-03-31).
1 Q3 2022 Calculation
Equity turnover
= (Revenue from contracts with customersQ3 2022
+ Revenue from contracts with customersQ2 2022
+ Revenue from contracts with customersQ1 2022
+ Revenue from contracts with customersQ4 2021)
÷ Total Diamondback Energy, Inc. stockholders’ equity
= (2,417 + 2,752 + 2,389 + 2,011)
÷ 13,843 = 0.69
2 Click competitor name to see calculations.
The analyzed data reveals several notable trends in the financial performance of the company over the periods presented.
- Revenue from contracts with customers
- Revenue demonstrated a general upward trajectory from March 2018 through September 2022, increasing from $467 million to a peak of $2,752 million in June 2022 before slightly decreasing to $2,417 million in September 2022. The trend includes significant growth phases, especially between 2019 and 2021, highlighting robust sales expansion. However, a sharp decline occurred during early 2020, coinciding likely with broader economic disruptions, with revenue falling to $412 million in June 2020. Post that decline, a strong recovery and growth phase is evident.
- Total stockholders’ equity
- Stockholders' equity showed a steady increase from $5,417 million in March 2018 to $13,843 million as of September 2022. Equity growth was more gradual from 2018 to early 2019, followed by a significant jump by the end of 2018 to over $13 billion, possibly reflecting changes in capital structure or retained earnings. After a dip during 2020, there was a sustained recovery and growth trend throughout 2021 and 2022, which indicates an overall strengthening of the company’s equity base.
- Equity turnover ratio
- The equity turnover ratio started at 0.26 in March 2018 and showed fluctuations with a notable dip to 0.16 at the end of 2018, coinciding with the spike in equity at that time. Subsequently, this ratio gradually increased, reaching a peak of 0.69 by September 2022. This upward trend suggests that the company has been generating higher revenues relative to its equity base over time, indicating improving efficiency in the use of equity to generate sales.
In summary, the company experienced revenue growth and expanding equity, with a temporary setback in early 2020 followed by strong recovery periods. The increasing equity turnover ratio reflects enhanced efficiency in utilizing equity to generate revenue, supporting a positive outlook on operational performance relative to shareholder investment.