Civitas Resources Inc (CIVI)
Cash ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 75,826 | 1,124,800 | 768,032 | 254,454 | 24,743 |
| Short-term investments | US$ in thousands | — | — | — | — | — |
| Total current liabilities | US$ in thousands | 2,205,090 | 1,851,890 | 1,177,930 | 1,119,510 | 74,484 |
| Cash ratio | 0.03 | 0.61 | 0.65 | 0.23 | 0.33 |
December 31, 2024 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($75,826K
+ $—K)
÷ $2,205,090K
= 0.03
The cash ratio of Civitas Resources Inc has exhibited fluctuations over the past five years. As of December 31, 2020, the company had a cash ratio of 0.33, indicating that it had $0.33 in cash and cash equivalents for every $1 of current liabilities. However, by December 31, 2021, the cash ratio had decreased to 0.23, suggesting a decrease in the company's ability to cover its short-term obligations with its current cash resources.
There was a significant improvement in the cash ratio by December 31, 2022, where it reached 0.65, signaling a healthier liquidity position for Civitas Resources Inc. This improvement continued into December 31, 2023, with a cash ratio of 0.61, indicating the company's strengthened ability to meet its short-term obligations using cash on hand.
However, there was a considerable decline in the cash ratio by December 31, 2024, dropping to 0.03. This sharp decrease suggests a potential liquidity challenge for the company, as it may struggle to cover its current liabilities with the available cash reserves.
Overall, the trend in Civitas Resources Inc's cash ratio demonstrates varying levels of liquidity and highlights the importance of monitoring cash management practices to ensure the company can meet its short-term financial obligations effectively.
Peer comparison
Dec 31, 2024