Analysis of Profitability Ratios
Quarterly Data
Profitability ratios measure the company ability to generate profitable sales from its resources (assets).
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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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Profitability Ratios (Summary)
Diamondback Energy Inc., profitability 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), 10-K (reporting date: 2017-12-31), 10-Q (reporting date: 2017-09-30), 10-Q (reporting date: 2017-06-30), 10-Q (reporting date: 2017-03-31).
- Operating Profit Margin
- The operating profit margin exhibited a positive trend from early 2017 through late 2018, maintaining levels above 50% during that period. Starting in 2019, the margin declined steadily, dropping sharply in early 2020 to significant negative values, reaching its lowest point in the fourth quarter of 2020. Following this trough, the margin exhibited a recovery beginning in 2021, returning to consistently positive territory and progressively increasing through the third quarter of 2022, ultimately reaching approximately 68.6%.
- Net Profit Margin
- The net profit margin followed a trajectory similar to that of the operating profit margin. It remained strong through 2017 and 2018, with margins typically above 30%. A downward shift occurred in 2019, intensifying in 2020 where the margin plunged into negative territory, reaching its most severe lows by the end of 2020. Recovery began in the first quarter of 2021, with net margins gradually improving throughout 2021 and into 2022, attaining levels above 40% by the third quarter of 2022.
- Return on Equity (ROE)
- Return on equity showed moderate stability and slight growth from 2017 through 2018, peaking around 11%. Starting in 2019, ROE declined steadily, plummeting into negative values during 2020, with the most notable deficits occurring in the last three quarters of 2020. From early 2021 onward, ROE demonstrated a strong rebound, increasing significantly and reaching over 30% by the third quarter of 2022, indicating improved profitability relative to shareholders' equity.
- Return on Assets (ROA)
- Return on assets remained relatively stable and positive from 2017 through 2018, maintaining a range from approximately 6% to nearly 7%. The metric showed a downward shift starting in 2019, turning negative in early 2020 and hitting the lowest points in the middle to late 2020 period. Starting in 2021, ROA recovered strongly, showing continuous improvement and rising to over 18% by the third quarter of 2022, reflecting enhanced asset efficiency and profitability.
- Overall Summary
- The analyzed financial ratios collectively indicate a period of strong performance from 2017 through 2018, followed by a marked decline in profitability and returns during 2019 and especially throughout 2020. The negative margins and returns in 2020 suggest significant operational and financial challenges during that year. Beginning in 2021, a robust recovery trend is observable across all four metrics, culminating in higher profitability and return ratios by the third quarter of 2022 compared to the pre-2019 period. This pattern suggests effective management response and operational improvements following the downturn.
Return on Sales
Return on Investment
Operating Profit Margin
Diamondback Energy Inc., operating profit margin 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 | Dec 31, 2017 | Sep 30, 2017 | Jun 30, 2017 | Mar 31, 2017 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||||||||||||||||||||||||||
| Income (loss) from operations | ||||||||||||||||||||||||||||||
| Revenue from contracts with customers | ||||||||||||||||||||||||||||||
| Profitability Ratio | ||||||||||||||||||||||||||||||
| Operating profit margin1 | ||||||||||||||||||||||||||||||
| Benchmarks | ||||||||||||||||||||||||||||||
| Operating Profit Margin, Competitors2 | ||||||||||||||||||||||||||||||
| Chevron Corp. | ||||||||||||||||||||||||||||||
| ConocoPhillips | ||||||||||||||||||||||||||||||
| Exxon Mobil Corp. | ||||||||||||||||||||||||||||||
| Occidental Petroleum Corp. | ||||||||||||||||||||||||||||||
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), 10-K (reporting date: 2017-12-31), 10-Q (reporting date: 2017-09-30), 10-Q (reporting date: 2017-06-30), 10-Q (reporting date: 2017-03-31).
1 Q3 2022 Calculation
Operating profit margin = 100
× (Income (loss) from operationsQ3 2022
+ Income (loss) from operationsQ2 2022
+ Income (loss) from operationsQ1 2022
+ Income (loss) from operationsQ4 2021)
÷ (Revenue from contracts with customersQ3 2022
+ Revenue from contracts with customersQ2 2022
+ Revenue from contracts with customersQ1 2022
+ Revenue from contracts with customersQ4 2021)
= 100 × ( + + + )
÷ ( + + + )
=
2 Click competitor name to see calculations.
- Income (loss) from operations
- The income from operations exhibited an overall upward trend from the first quarter of 2017 through the third quarter of 2019, reaching a peak of 411 million US$. A sharp decline follows in 2020, with significant losses reported in the second and third quarters (-2672 million US$ and -1256 million US$ respectively). After this downturn, a recovery phase is observed beginning in early 2021, culminating in sustained positive figures above 1600 million US$ by the third quarter of 2022, indicating a strong operational rebound.
- Revenue from contracts with customers
- Revenue demonstrated consistent growth through 2017 to 2019, increasing from 232 million US$ to over 1000 million US$. There was a notable dip in revenue during the first half of 2020, dropping to a low of 412 million US$. This was followed by a recovery and steady increase post-2020, with revenues reaching a maximum of 2752 million US$ in mid-2022 before declining slightly to 2417 million US$ in the third quarter of 2022.
- Operating profit margin (%)
- Operating profit margin data started from the first quarter of 2018 and initially maintained levels above 50%, peaking at 54.3%. However, it declined progressively towards the end of 2019 and into 2020, reaching negative margins that exceeded -165% during the third and fourth quarters of 2020. Margins remained negative through early 2021 but began to recover sharply by mid-2021, eventually surpassing 60% by the second quarter of 2022. The margin remained robust near 68% in the subsequent quarters.
Net Profit Margin
Diamondback Energy Inc., net profit margin 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 | Dec 31, 2017 | Sep 30, 2017 | Jun 30, 2017 | Mar 31, 2017 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||||||||||||||||||||||||||
| Net income (loss) attributable to Diamondback Energy, Inc. | ||||||||||||||||||||||||||||||
| Revenue from contracts with customers | ||||||||||||||||||||||||||||||
| Profitability Ratio | ||||||||||||||||||||||||||||||
| Net profit margin1 | ||||||||||||||||||||||||||||||
| Benchmarks | ||||||||||||||||||||||||||||||
| Net Profit Margin, Competitors2 | ||||||||||||||||||||||||||||||
| Chevron Corp. | ||||||||||||||||||||||||||||||
| ConocoPhillips | ||||||||||||||||||||||||||||||
| Exxon Mobil Corp. | ||||||||||||||||||||||||||||||
| Occidental Petroleum Corp. | ||||||||||||||||||||||||||||||
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), 10-K (reporting date: 2017-12-31), 10-Q (reporting date: 2017-09-30), 10-Q (reporting date: 2017-06-30), 10-Q (reporting date: 2017-03-31).
1 Q3 2022 Calculation
Net profit margin = 100
× (Net income (loss) attributable to Diamondback Energy, Inc.Q3 2022
+ Net income (loss) attributable to Diamondback Energy, Inc.Q2 2022
+ Net income (loss) attributable to Diamondback Energy, Inc.Q1 2022
+ Net income (loss) attributable to Diamondback Energy, Inc.Q4 2021)
÷ (Revenue from contracts with customersQ3 2022
+ Revenue from contracts with customersQ2 2022
+ Revenue from contracts with customersQ1 2022
+ Revenue from contracts with customersQ4 2021)
= 100 × ( + + + )
÷ ( + + + )
=
2 Click competitor name to see calculations.
The analysis of the quarterly financial data reveals several key trends in profitability and revenue performance over the observed periods.
- Net Income (Loss) Attributable to the Company
- Net income shows considerable volatility over the periods. Initially, there is a general upward trend from 136 million to a peak of 368 million by Q3 2019. This is followed by a sharp decline into negative territory during 2020, reaching its lowest point at -2,393 million in Q2 2020, indicative of substantial losses likely tied to market or operational challenges. The subsequent quarters show a gradual recovery, returning to positive territory and increasing steadily up to 1,416 million in Q1 2022 before slightly decreasing to 1,184 million in Q3 2022.
- Revenue from Contracts with Customers
- Revenue demonstrates a consistent upward trend throughout the period, starting at 232 million in Q1 2017 and peaking at 2,752 million in Q2 2022. Despite a dip in the lower quarters of 2020, revenue recovers quickly and continues to grow, reaching over ten times the initial value by mid-2022. This trend indicates expanding sales or service volumes and possibly improved market conditions or demand for the company’s offerings.
- Net Profit Margin
- The net profit margin shows notable fluctuations, first with high positive margins around 30-40% in the 2017-2019 timeframe, reflecting strong profitability relative to revenue. This profitability sharply deteriorates during 2020, turning significantly negative, with the lowest margins reaching approximately -164% in Q1 2020. This downturn aligns with the net income losses in the same period. Profit margins recover in late 2020 and from 2021 onward, returning to positive territory and increasing steadily, reaching approximately 46% by Q3 2022, suggesting improved cost management and pricing power or higher margin business activities in recent quarters.
Overall, the company experienced a period of robust growth in revenue and profitability up until 2019, followed by significant financial stress and losses in 2020. Recovery since then has been marked by improved profitability margins and volume growth, with recent data pointing to strong operational performance and earnings resilience.
Return on Equity (ROE)
Diamondback Energy Inc., ROE 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 | Dec 31, 2017 | Sep 30, 2017 | Jun 30, 2017 | Mar 31, 2017 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||||||||||||||||||||||||||
| Net income (loss) attributable to Diamondback Energy, Inc. | ||||||||||||||||||||||||||||||
| Total Diamondback Energy, Inc. stockholders’ equity | ||||||||||||||||||||||||||||||
| Profitability Ratio | ||||||||||||||||||||||||||||||
| ROE1 | ||||||||||||||||||||||||||||||
| Benchmarks | ||||||||||||||||||||||||||||||
| ROE, Competitors2 | ||||||||||||||||||||||||||||||
| Chevron Corp. | ||||||||||||||||||||||||||||||
| ConocoPhillips | ||||||||||||||||||||||||||||||
| Exxon Mobil Corp. | ||||||||||||||||||||||||||||||
| Occidental Petroleum Corp. | ||||||||||||||||||||||||||||||
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), 10-K (reporting date: 2017-12-31), 10-Q (reporting date: 2017-09-30), 10-Q (reporting date: 2017-06-30), 10-Q (reporting date: 2017-03-31).
1 Q3 2022 Calculation
ROE = 100
× (Net income (loss) attributable to Diamondback Energy, Inc.Q3 2022
+ Net income (loss) attributable to Diamondback Energy, Inc.Q2 2022
+ Net income (loss) attributable to Diamondback Energy, Inc.Q1 2022
+ Net income (loss) attributable to Diamondback Energy, Inc.Q4 2021)
÷ Total Diamondback Energy, Inc. stockholders’ equity
= 100 × ( + + + )
÷ =
2 Click competitor name to see calculations.
The financial performance over the analyzed periods exhibits significant fluctuations in profitability and equity levels.
- Net Income (Loss) Attributable to Diamondback Energy, Inc.
- The net income shows a variable pattern with generally positive results from early 2017 through early 2019, including notable peaks such as 368 million US$ in September 2019. However, starting from the end of 2019 and continuing through 2020, the data reflects a substantial decline, marked by consecutive losses reaching a low of -2393 million US$ in the second quarter of 2020. Following this trough, the net income rebounded from 2021 onward, with a steady increase peaking at 1416 million US$ in the third quarter of 2022.
- Total Diamondback Energy, Inc. Stockholders’ Equity
- Stockholders’ equity demonstrates a generally upward trajectory throughout the period, increasing from 4652 million US$ in March 2017 to 13843 million US$ in September 2022. Notable is the sharp increase between December 2018 and December 2019, rising from 5933 million US$ to 13249 million US$. Despite some minor decreases in 2020 and early 2021, equity levels continued an upward trend in subsequent quarters, reaching higher levels in 2022.
- Return on Equity (ROE)
- The ROE percentages align with the net income trends, showing satisfactory profitability in 2017 and 2018 with values ranging approximately from 9% to 11%. This measure drops considerably during the loss periods of 2019 and 2020, turning sharply negative, indicating significant losses relative to equity. Improvement starts in early 2021, with ROE moving back into positive territory and increasing steadily through 2022, reaching over 30% by the third quarter.
In summary, the data reveals a period of growth and profitability in the initial years, interrupted by a sharp downturn coinciding with large net losses in 2019 and 2020. The company's equity base expanded significantly during this downturn, potentially reflecting capital raises or retained losses. From 2021 onward, financial results show recovery with rising profitability and corresponding improvements in ROE, coupled with continued growth in equity.
Return on Assets (ROA)
Diamondback Energy Inc., ROA calculation (quarterly data)
| Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | Dec 31, 2018 | Sep 30, 2018 | Jun 30, 2018 | Mar 31, 2018 | Dec 31, 2017 | Sep 30, 2017 | Jun 30, 2017 | Mar 31, 2017 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||||||||||||||||||||||||||
| Net income (loss) attributable to Diamondback Energy, Inc. | ||||||||||||||||||||||||||||||
| Total assets | ||||||||||||||||||||||||||||||
| Profitability Ratio | ||||||||||||||||||||||||||||||
| ROA1 | ||||||||||||||||||||||||||||||
| Benchmarks | ||||||||||||||||||||||||||||||
| ROA, Competitors2 | ||||||||||||||||||||||||||||||
| Chevron Corp. | ||||||||||||||||||||||||||||||
| ConocoPhillips | ||||||||||||||||||||||||||||||
| Exxon Mobil Corp. | ||||||||||||||||||||||||||||||
| Occidental Petroleum Corp. | ||||||||||||||||||||||||||||||
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), 10-K (reporting date: 2017-12-31), 10-Q (reporting date: 2017-09-30), 10-Q (reporting date: 2017-06-30), 10-Q (reporting date: 2017-03-31).
1 Q3 2022 Calculation
ROA = 100
× (Net income (loss) attributable to Diamondback Energy, Inc.Q3 2022
+ Net income (loss) attributable to Diamondback Energy, Inc.Q2 2022
+ Net income (loss) attributable to Diamondback Energy, Inc.Q1 2022
+ Net income (loss) attributable to Diamondback Energy, Inc.Q4 2021)
÷ Total assets
= 100 × ( + + + )
÷ =
2 Click competitor name to see calculations.
The financial data reveals distinct trends over the analyzed periods, highlighting fluctuations in profitability, asset base, and returns.
- Net Income (Loss) Attributable
- Over the quarters beginning in March 2017, net income showed variability, generally rising until peaking in December 2018 at US$ 307 million. Subsequently, there was a sharp decline during 2019 and 2020, reaching significant losses by June and September 2020, with values of -US$ 2,393 million and -US$ 1,113 million respectively. Recovery occurred starting in late 2020, with net income returning to positive territory and increasing steadily through 2021 and into 2022, reaching a high of US$ 1,416 million in March 2022 before slightly retreating to US$ 1,184 million in September 2022.
- Total Assets
- Total assets exhibited a general upward trend from March 2017 through December 2018, rising sharply from US$ 6,370 million to US$ 21,596 million. From 2019 onwards, the asset base stabilized within the approximately US$ 23,000 million to US$ 24,000 million range, showing minor fluctuations but maintaining overall stability through 2022.
- Return on Assets (ROA)
- ROA was not reported in the initial quarters but began at around 6.21% in September 2017, maintaining a level near 6% through December 2018. A downward trend is observed starting 2019, declining to negative returns during much of 2020, with the lowest point at -25.64% by March 2021, closely aligning with the period of significant net losses. From mid-2021 onward, ROA improved markedly, returning into positive territory and continuing to rise, reaching 18.37% by September 2022, suggesting enhanced efficiency in asset utilization and profitability in recent periods.
In summary, the analyzed periods portray a company that experienced a peak in profitability and asset growth up to late 2018, a challenging phase with significant losses and negative returns on assets in 2019 and 2020, followed by a strong recovery marked by increasing net income and improved ROA in 2021 and 2022. The asset base grew substantially up to 2018 and then stabilized, indicating a possible strategic shift or consolidation phase.