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 
Quarterly Data

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 (quarterly data)

Microsoft Excel
ROE = ROA × Financial Leverage
Sep 30, 2022 31.65% = 18.37% × 1.72
Jun 30, 2022 28.88% = 16.40% × 1.76
Mar 31, 2022 21.51% = 11.75% × 1.83
Dec 31, 2021 18.05% = 9.53% × 1.89
Sep 30, 2021 3.84% = 1.95% × 1.97
Jun 30, 2021 -12.09% = -5.91% × 2.04
Mar 31, 2021 -37.71% = -18.30% × 2.06
Dec 31, 2020 -51.36% = -25.64% × 2.00
Sep 30, 2020 -44.65% = -22.73% × 1.96
Jun 30, 2020 -25.98% = -13.69% × 1.90
Mar 31, 2020 -0.33% = -0.18% × 1.82
Dec 31, 2019 1.81% = 1.02% × 1.78
Sep 30, 2019 7.36% = 4.39% × 1.68
Jun 30, 2019 5.87% = 3.55% × 1.65
Mar 31, 2019 5.03% = 3.11% × 1.62
Dec 31, 2018 6.17% = 3.92% × 1.58
Sep 30, 2018 11.02% = 6.66% × 1.65
Jun 30, 2018 10.11% = 6.36% × 1.59
Mar 31, 2018 9.39% = 6.19% × 1.52
Dec 31, 2017 9.18% = 6.21% × 1.48
Sep 30, 2017 — = — × 1.49
Jun 30, 2017 — = — × 1.41
Mar 31, 2017 — = — × 1.37

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).

The primary reason for the increase in return on equity ratio (ROE) over Q3 2022 is the increase in profitability measured by return on assets ratio (ROA).

Three-Component Disaggregation of ROE

Diamondback Energy Inc., decomposition of ROE (quarterly data)

Microsoft Excel
ROE = Net Profit Margin × Asset Turnover × Financial Leverage
Sep 30, 2022 31.65% = 45.78% × 0.40 × 1.72
Jun 30, 2022 28.88% = 42.50% × 0.39 × 1.76
Mar 31, 2022 21.51% = 34.42% × 0.34 × 1.83
Dec 31, 2021 18.05% = 32.34% × 0.29 × 1.89
Sep 30, 2021 3.84% = 8.03% × 0.24 × 1.97
Jun 30, 2021 -12.09% = -30.72% × 0.19 × 2.04
Mar 31, 2021 -37.71% = -132.18% × 0.14 × 2.06
Dec 31, 2020 -51.36% = -163.90% × 0.16 × 2.00
Sep 30, 2020 -44.65% = -137.98% × 0.16 × 1.96
Jun 30, 2020 -25.98% = -83.35% × 0.16 × 1.90
Mar 31, 2020 -0.33% = -1.07% × 0.17 × 1.82
Dec 31, 2019 1.81% = 6.17% × 0.17 × 1.78
Sep 30, 2019 7.36% = 30.23% × 0.15 × 1.68
Jun 30, 2019 5.87% = 27.51% × 0.13 × 1.65
Mar 31, 2019 5.03% = 27.66% × 0.11 × 1.62
Dec 31, 2018 6.17% = 39.71% × 0.10 × 1.58
Sep 30, 2018 11.02% = 34.47% × 0.19 × 1.65
Jun 30, 2018 10.11% = 34.14% × 0.19 × 1.59
Mar 31, 2018 9.39% = 35.82% × 0.17 × 1.52
Dec 31, 2017 9.18% = 40.65% × 0.15 × 1.48
Sep 30, 2017 — = — × — × 1.49
Jun 30, 2017 — = — × — × 1.41
Mar 31, 2017 — = — × — × 1.37

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).

The primary reason for the increase in return on equity ratio (ROE) over Q3 2022 is the increase in profitability measured by net profit margin ratio.

Two-Component Disaggregation of ROA

Diamondback Energy Inc., decomposition of ROA (quarterly data)

Microsoft Excel
ROA = Net Profit Margin × Asset Turnover
Sep 30, 2022 18.37% = 45.78% × 0.40
Jun 30, 2022 16.40% = 42.50% × 0.39
Mar 31, 2022 11.75% = 34.42% × 0.34
Dec 31, 2021 9.53% = 32.34% × 0.29
Sep 30, 2021 1.95% = 8.03% × 0.24
Jun 30, 2021 -5.91% = -30.72% × 0.19
Mar 31, 2021 -18.30% = -132.18% × 0.14
Dec 31, 2020 -25.64% = -163.90% × 0.16
Sep 30, 2020 -22.73% = -137.98% × 0.16
Jun 30, 2020 -13.69% = -83.35% × 0.16
Mar 31, 2020 -0.18% = -1.07% × 0.17
Dec 31, 2019 1.02% = 6.17% × 0.17
Sep 30, 2019 4.39% = 30.23% × 0.15
Jun 30, 2019 3.55% = 27.51% × 0.13
Mar 31, 2019 3.11% = 27.66% × 0.11
Dec 31, 2018 3.92% = 39.71% × 0.10
Sep 30, 2018 6.66% = 34.47% × 0.19
Jun 30, 2018 6.36% = 34.14% × 0.19
Mar 31, 2018 6.19% = 35.82% × 0.17
Dec 31, 2017 6.21% = 40.65% × 0.15
Sep 30, 2017 — = — × —
Jun 30, 2017 — = — × —
Mar 31, 2017 — = — × —

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).

The primary reason for the increase in return on assets ratio (ROA) over Q3 2022 is the increase in profitability measured by net profit margin ratio.