Analysis of Short-term (Operating) Activity Ratios
Activity ratios measure how efficiently a company performs day-to-day tasks, such us the collection of receivables and management of inventory.
Short-term Activity Ratios (Summary)
Diamondback Energy Inc., short-term (operating) activity 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).
| Short-term activity ratio | Description | The company |
|---|---|---|
| Inventory turnover | An activity ratio calculated as cost of goods sold divided by inventory. | Diamondback Energy Inc. inventory turnover ratio deteriorated from 2019 to 2020 but then improved from 2020 to 2021 exceeding 2019 level. |
| Receivables turnover | An activity ratio equal to revenue divided by receivables. | Diamondback Energy Inc. receivables turnover ratio improved from 2019 to 2020 and from 2020 to 2021. |
| Payables turnover | An activity ratio calculated as cost of goods sold divided by payables. | Diamondback Energy Inc. payables turnover ratio increased from 2019 to 2020 and from 2020 to 2021. |
| Short-term activity ratio | Description | The company |
|---|---|---|
| Average inventory processing period | An activity ratio equal to the number of days in the period divided by inventory turnover over the period. | |
| Average receivable collection period | An activity ratio equal to the number of days in the period divided by receivables turnover. | Diamondback Energy Inc. number of days of receivables outstanding improved from 2019 to 2020 and from 2020 to 2021. |
| Operating cycle | Equal to average inventory processing period plus average receivables collection period. | Diamondback Energy Inc. operating cycle improved from 2019 to 2020 and from 2020 to 2021. |
| Average payables payment period | An estimate of the average number of days it takes a company to pay its suppliers; equal to the number of days in the period divided by payables turnover ratio for the period. | Diamondback Energy Inc. number of days of payables outstanding decreased from 2019 to 2020 and from 2020 to 2021. |
| Cash conversion cycle | A financial metric that measures the length of time required for a company to convert cash invested in its operations to cash received as a result of its operations; equal to average inventory processing period plus average receivables collection period minus average payables payment period. | Diamondback Energy Inc. cash conversion cycle deteriorated from 2019 to 2020 and from 2020 to 2021. |
Inventory Turnover
Diamondback Energy Inc., inventory 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 | 6,747) | 2,756) | 3,887) | 2,130) | 1,186) | |
| Inventories | 62) | 33) | 37) | 38) | 9) | |
| Short-term Activity Ratio | ||||||
| Inventory turnover1 | 108.82 | 83.52 | 105.05 | 56.69 | 130.25 | |
| Benchmarks | ||||||
| Inventory Turnover, Competitors2 | ||||||
| Chevron Corp. | 24.68 | 16.64 | 23.92 | — | — | |
| ConocoPhillips | 37.94 | 18.75 | 31.74 | — | — | |
| Exxon Mobil Corp. | 14.73 | 9.47 | 13.79 | — | — | |
| Marathon Petroleum Corp. | 13.66 | 8.22 | 10.76 | — | — | |
| Occidental Petroleum Corp. | 14.06 | 9.38 | 14.09 | — | — | |
| Valero Energy Corp. | 17.69 | 10.87 | 14.76 | — | — | |
| Inventory Turnover, Sector | ||||||
| Oil, Gas & Consumable Fuels | 17.07 | 10.64 | 15.01 | — | — | |
| Inventory Turnover, Industry | ||||||
| Energy | 16.27 | 10.31 | 14.32 | — | — | |
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
Inventory turnover = Revenue from contracts with customers ÷ Inventories
= 6,747 ÷ 62 = 108.82
2 Click competitor name to see calculations.
| Short-term activity ratio | Description | The company |
|---|---|---|
| Inventory turnover | An activity ratio calculated as cost of goods sold divided by inventory. | Diamondback Energy Inc. inventory turnover ratio deteriorated from 2019 to 2020 but then improved from 2020 to 2021 exceeding 2019 level. |
Receivables Turnover
Diamondback Energy Inc., receivables 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 | 6,747) | 2,756) | 3,887) | 2,130) | 1,186) | |
| Accounts receivable, oil and natural gas sales, net | 598) | 281) | 429) | 297) | 159) | |
| Short-term Activity Ratio | ||||||
| Receivables turnover1 | 11.28 | 9.81 | 9.06 | 7.18 | 7.48 | |
| Benchmarks | ||||||
| Receivables Turnover, Competitors2 | ||||||
| Chevron Corp. | 8.45 | 8.24 | 10.50 | — | — | |
| ConocoPhillips | 7.00 | 7.13 | 9.97 | — | — | |
| Exxon Mobil Corp. | 10.29 | 10.93 | 12.11 | — | — | |
| Marathon Petroleum Corp. | 10.87 | 12.11 | 15.75 | — | — | |
| Occidental Petroleum Corp. | 6.17 | 8.42 | 3.20 | — | — | |
| Valero Energy Corp. | 11.43 | 13.50 | 13.44 | — | — | |
| Receivables Turnover, Sector | ||||||
| Oil, Gas & Consumable Fuels | 9.58 | 10.30 | 11.35 | — | — | |
| Receivables Turnover, Industry | ||||||
| Energy | 9.24 | 9.67 | 10.53 | — | — | |
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
Receivables turnover = Revenue from contracts with customers ÷ Accounts receivable, oil and natural gas sales, net
= 6,747 ÷ 598 = 11.28
2 Click competitor name to see calculations.
| Short-term activity ratio | Description | The company |
|---|---|---|
| Receivables turnover | An activity ratio equal to revenue divided by receivables. | Diamondback Energy Inc. receivables turnover ratio improved from 2019 to 2020 and from 2020 to 2021. |
Payables Turnover
Diamondback Energy Inc., payables 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 | 6,747) | 2,756) | 3,887) | 2,130) | 1,186) | |
| Accounts payable, trade | 36) | 71) | 179) | 128) | 95) | |
| Short-term Activity Ratio | ||||||
| Payables turnover1 | 187.42 | 38.82 | 21.72 | 16.64 | 12.54 | |
| Benchmarks | ||||||
| Payables Turnover, Competitors2 | ||||||
| Chevron Corp. | 9.46 | 8.63 | 9.92 | — | — | |
| ConocoPhillips | 9.16 | 7.04 | 10.25 | — | — | |
| Exxon Mobil Corp. | 10.39 | 10.20 | 10.35 | — | — | |
| Marathon Petroleum Corp. | 8.03 | 8.42 | 9.48 | — | — | |
| Occidental Petroleum Corp. | 6.66 | 5.96 | 2.91 | — | — | |
| Valero Energy Corp. | 8.87 | 10.79 | 10.15 | — | — | |
| Payables Turnover, Sector | ||||||
| Oil, Gas & Consumable Fuels | 9.27 | 9.19 | 9.35 | — | — | |
| Payables Turnover, Industry | ||||||
| Energy | 9.15 | 9.07 | 9.14 | — | — | |
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
Payables turnover = Revenue from contracts with customers ÷ Accounts payable, trade
= 6,747 ÷ 36 = 187.42
2 Click competitor name to see calculations.
| Short-term activity ratio | Description | The company |
|---|---|---|
| Payables turnover | An activity ratio calculated as cost of goods sold divided by payables. | Diamondback Energy Inc. payables turnover ratio increased from 2019 to 2020 and from 2020 to 2021. |
Working Capital Turnover
Diamondback Energy Inc., working capital 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) | ||||||
| Current assets | 1,446) | 602) | 869) | 925) | 359) | |
| Less: Current liabilities | 1,438) | 1,236) | 1,263) | 1,020) | 577) | |
| Working capital | 8) | (634) | (394) | (95) | (219) | |
| Revenue from contracts with customers | 6,747) | 2,756) | 3,887) | 2,130) | 1,186) | |
| Short-term Activity Ratio | ||||||
| Working capital turnover1 | 843.38 | — | — | — | — | |
| Benchmarks | ||||||
| Working Capital Turnover, Competitors2 | ||||||
| Chevron Corp. | 22.40 | 24.25 | 77.75 | — | — | |
| ConocoPhillips | 11.37 | 2.80 | 3.30 | — | — | |
| Exxon Mobil Corp. | 110.19 | — | — | — | — | |
| Marathon Petroleum Corp. | 9.52 | 5.53 | 30.81 | — | — | |
| Occidental Petroleum Corp. | 13.76 | 29.88 | 5.46 | — | — | |
| Valero Energy Corp. | 26.42 | 9.89 | 18.65 | — | — | |
| Working Capital Turnover, Sector | ||||||
| Oil, Gas & Consumable Fuels | 22.86 | 23.50 | 60.26 | — | — | |
| Working Capital Turnover, Industry | ||||||
| Energy | 22.01 | 21.93 | 51.98 | — | — | |
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
Working capital turnover = Revenue from contracts with customers ÷ Working capital
= 6,747 ÷ 8 = 843.38
2 Click competitor name to see calculations.
Average Inventory Processing Period
Diamondback Energy Inc., average inventory processing period calculation, comparison to benchmarks
| Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data | ||||||
| Inventory turnover | 108.82 | 83.52 | 105.05 | 56.69 | 130.25 | |
| Short-term Activity Ratio (no. days) | ||||||
| Average inventory processing period1 | 3 | 4 | 3 | 6 | 3 | |
| Benchmarks (no. days) | ||||||
| Average Inventory Processing Period, Competitors2 | ||||||
| Chevron Corp. | 15 | 22 | 15 | — | — | |
| ConocoPhillips | 10 | 19 | 11 | — | — | |
| Exxon Mobil Corp. | 25 | 39 | 26 | — | — | |
| Marathon Petroleum Corp. | 27 | 44 | 34 | — | — | |
| Occidental Petroleum Corp. | 26 | 39 | 26 | — | — | |
| Valero Energy Corp. | 21 | 34 | 25 | — | — | |
| Average Inventory Processing Period, Sector | ||||||
| Oil, Gas & Consumable Fuels | 21 | 34 | 24 | — | — | |
| Average Inventory Processing Period, Industry | ||||||
| Energy | 22 | 35 | 25 | — | — | |
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
Average inventory processing period = 365 ÷ Inventory turnover
= 365 ÷ 108.82 = 3
2 Click competitor name to see calculations.
| Short-term activity ratio | Description | The company |
|---|---|---|
| Average inventory processing period | An activity ratio equal to the number of days in the period divided by inventory turnover over the period. |
Average Receivable Collection Period
Diamondback Energy Inc., average receivable collection period calculation, comparison to benchmarks
| Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data | ||||||
| Receivables turnover | 11.28 | 9.81 | 9.06 | 7.18 | 7.48 | |
| Short-term Activity Ratio (no. days) | ||||||
| Average receivable collection period1 | 32 | 37 | 40 | 51 | 49 | |
| Benchmarks (no. days) | ||||||
| Average Receivable Collection Period, Competitors2 | ||||||
| Chevron Corp. | 43 | 44 | 35 | — | — | |
| ConocoPhillips | 52 | 51 | 37 | — | — | |
| Exxon Mobil Corp. | 35 | 33 | 30 | — | — | |
| Marathon Petroleum Corp. | 34 | 30 | 23 | — | — | |
| Occidental Petroleum Corp. | 59 | 43 | 114 | — | — | |
| Valero Energy Corp. | 32 | 27 | 27 | — | — | |
| Average Receivable Collection Period, Sector | ||||||
| Oil, Gas & Consumable Fuels | 38 | 35 | 32 | — | — | |
| Average Receivable Collection Period, Industry | ||||||
| Energy | 40 | 38 | 35 | — | — | |
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
Average receivable collection period = 365 ÷ Receivables turnover
= 365 ÷ 11.28 = 32
2 Click competitor name to see calculations.
| Short-term activity ratio | Description | The company |
|---|---|---|
| Average receivable collection period | An activity ratio equal to the number of days in the period divided by receivables turnover. | Diamondback Energy Inc. number of days of receivables outstanding improved from 2019 to 2020 and from 2020 to 2021. |
Operating Cycle
Diamondback Energy Inc., operating cycle calculation, comparison to benchmarks
No. days
| Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data | ||||||
| Average inventory processing period | 3 | 4 | 3 | 6 | 3 | |
| Average receivable collection period | 32 | 37 | 40 | 51 | 49 | |
| Short-term Activity Ratio | ||||||
| Operating cycle1 | 35 | 41 | 43 | 57 | 52 | |
| Benchmarks | ||||||
| Operating Cycle, Competitors2 | ||||||
| Chevron Corp. | 58 | 66 | 50 | — | — | |
| ConocoPhillips | 62 | 70 | 48 | — | — | |
| Exxon Mobil Corp. | 60 | 72 | 56 | — | — | |
| Marathon Petroleum Corp. | 61 | 74 | 57 | — | — | |
| Occidental Petroleum Corp. | 85 | 82 | 140 | — | — | |
| Valero Energy Corp. | 53 | 61 | 52 | — | — | |
| Operating Cycle, Sector | ||||||
| Oil, Gas & Consumable Fuels | 59 | 69 | 56 | — | — | |
| Operating Cycle, Industry | ||||||
| Energy | 62 | 73 | 60 | — | — | |
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
Operating cycle = Average inventory processing period + Average receivable collection period
= 3 + 32 = 35
2 Click competitor name to see calculations.
| Short-term activity ratio | Description | The company |
|---|---|---|
| Operating cycle | Equal to average inventory processing period plus average receivables collection period. | Diamondback Energy Inc. operating cycle improved from 2019 to 2020 and from 2020 to 2021. |
Average Payables Payment Period
Diamondback Energy Inc., average payables payment period calculation, comparison to benchmarks
| Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data | ||||||
| Payables turnover | 187.42 | 38.82 | 21.72 | 16.64 | 12.54 | |
| Short-term Activity Ratio (no. days) | ||||||
| Average payables payment period1 | 2 | 9 | 17 | 22 | 29 | |
| Benchmarks (no. days) | ||||||
| Average Payables Payment Period, Competitors2 | ||||||
| Chevron Corp. | 39 | 42 | 37 | — | — | |
| ConocoPhillips | 40 | 52 | 36 | — | — | |
| Exxon Mobil Corp. | 35 | 36 | 35 | — | — | |
| Marathon Petroleum Corp. | 45 | 43 | 38 | — | — | |
| Occidental Petroleum Corp. | 55 | 61 | 126 | — | — | |
| Valero Energy Corp. | 41 | 34 | 36 | — | — | |
| Average Payables Payment Period, Sector | ||||||
| Oil, Gas & Consumable Fuels | 39 | 40 | 39 | — | — | |
| Average Payables Payment Period, Industry | ||||||
| Energy | 40 | 40 | 40 | — | — | |
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
Average payables payment period = 365 ÷ Payables turnover
= 365 ÷ 187.42 = 2
2 Click competitor name to see calculations.
| Short-term activity ratio | Description | The company |
|---|---|---|
| Average payables payment period | An estimate of the average number of days it takes a company to pay its suppliers; equal to the number of days in the period divided by payables turnover ratio for the period. | Diamondback Energy Inc. number of days of payables outstanding decreased from 2019 to 2020 and from 2020 to 2021. |
Cash Conversion Cycle
Diamondback Energy Inc., cash conversion cycle calculation, comparison to benchmarks
No. days
| Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data | ||||||
| Average inventory processing period | 3 | 4 | 3 | 6 | 3 | |
| Average receivable collection period | 32 | 37 | 40 | 51 | 49 | |
| Average payables payment period | 2 | 9 | 17 | 22 | 29 | |
| Short-term Activity Ratio | ||||||
| Cash conversion cycle1 | 33 | 32 | 26 | 35 | 23 | |
| Benchmarks | ||||||
| Cash Conversion Cycle, Competitors2 | ||||||
| Chevron Corp. | 19 | 24 | 13 | — | — | |
| ConocoPhillips | 22 | 18 | 12 | — | — | |
| Exxon Mobil Corp. | 25 | 36 | 21 | — | — | |
| Marathon Petroleum Corp. | 16 | 31 | 19 | — | — | |
| Occidental Petroleum Corp. | 30 | 21 | 14 | — | — | |
| Valero Energy Corp. | 12 | 27 | 16 | — | — | |
| Cash Conversion Cycle, Sector | ||||||
| Oil, Gas & Consumable Fuels | 20 | 29 | 17 | — | — | |
| Cash Conversion Cycle, Industry | ||||||
| Energy | 22 | 33 | 20 | — | — | |
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
Cash conversion cycle = Average inventory processing period + Average receivable collection period – Average payables payment period
= 3 + 32 – 2 = 33
2 Click competitor name to see calculations.
| Short-term activity ratio | Description | The company |
|---|---|---|
| Cash conversion cycle | A financial metric that measures the length of time required for a company to convert cash invested in its operations to cash received as a result of its operations; equal to average inventory processing period plus average receivables collection period minus average payables payment period. | Diamondback Energy Inc. cash conversion cycle deteriorated from 2019 to 2020 and from 2020 to 2021. |