Stock Analysis on Net
Stock Analysis on Net

Diamondback Energy Inc. (NASDAQ:FANG)

This company has been moved to the archive! The financial data has not been updated since November 8, 2022.

DuPont Analysis: Disaggregation of ROE, ROA, and Net Profit Margin 

Microsoft Excel

Decomposing ROE involves expressing net income divided by shareholders’ equity as the product of component ratios.

Two-Component Disaggregation of ROE

Diamondback Energy Inc., decomposition of ROE

Microsoft Excel
ROE = ROA × Financial Leverage
Dec 31, 2021 18.05% = 9.53% × 1.89
Dec 31, 2020 -51.36% = -25.64% × 2.00
Dec 31, 2019 1.81% = 1.02% × 1.78
Dec 31, 2018 6.17% = 3.92% × 1.58
Dec 31, 2017 9.18% = 6.21% × 1.48

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).

Three-Component Disaggregation of ROE

Diamondback Energy Inc., decomposition of ROE

Microsoft Excel
ROE = Net Profit Margin × Asset Turnover × Financial Leverage
Dec 31, 2021 18.05% = 32.34% × 0.29 × 1.89
Dec 31, 2020 -51.36% = -163.90% × 0.16 × 2.00
Dec 31, 2019 1.81% = 6.17% × 0.17 × 1.78
Dec 31, 2018 6.17% = 39.71% × 0.10 × 1.58
Dec 31, 2017 9.18% = 40.65% × 0.15 × 1.48

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).

Five-Component Disaggregation of ROE

Diamondback Energy Inc., decomposition of ROE

Microsoft Excel
ROE = Tax Burden × Interest Burden × EBIT Margin × Asset Turnover × Financial Leverage
Dec 31, 2021 18.05% = 0.78 × 0.94 × 44.49% × 0.29 × 1.89
Dec 31, 2020 -51.36% = — × — × -196.88% × 0.16 × 2.00
Dec 31, 2019 1.81% = 0.84 × 0.63 × 11.73% × 0.17 × 1.78
Dec 31, 2018 6.17% = 0.83 × 0.93 × 51.25% × 0.10 × 1.58
Dec 31, 2017 9.18% = 1.04 × 0.92 × 42.26% × 0.15 × 1.48

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).

Two-Component Disaggregation of ROA

Diamondback Energy Inc., decomposition of ROA

Microsoft Excel
ROA = Net Profit Margin × Asset Turnover
Dec 31, 2021 9.53% = 32.34% × 0.29
Dec 31, 2020 -25.64% = -163.90% × 0.16
Dec 31, 2019 1.02% = 6.17% × 0.17
Dec 31, 2018 3.92% = 39.71% × 0.10
Dec 31, 2017 6.21% = 40.65% × 0.15

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).

Four-Component Disaggregation of ROA

Diamondback Energy Inc., decomposition of ROA

Microsoft Excel
ROA = Tax Burden × Interest Burden × EBIT Margin × Asset Turnover
Dec 31, 2021 9.53% = 0.78 × 0.94 × 44.49% × 0.29
Dec 31, 2020 -25.64% = — × — × -196.88% × 0.16
Dec 31, 2019 1.02% = 0.84 × 0.63 × 11.73% × 0.17
Dec 31, 2018 3.92% = 0.83 × 0.93 × 51.25% × 0.10
Dec 31, 2017 6.21% = 1.04 × 0.92 × 42.26% × 0.15

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).

Disaggregation of Net Profit Margin

Diamondback Energy Inc., decomposition of net profit margin ratio

Microsoft Excel
Net Profit Margin = Tax Burden × Interest Burden × EBIT Margin
Dec 31, 2021 32.34% = 0.78 × 0.94 × 44.49%
Dec 31, 2020 -163.90% = — × — × -196.88%
Dec 31, 2019 6.17% = 0.84 × 0.63 × 11.73%
Dec 31, 2018 39.71% = 0.83 × 0.93 × 51.25%
Dec 31, 2017 40.65% = 1.04 × 0.92 × 42.26%

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).