Civitas Resources Inc (CIVI)

Cash ratio

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Cash and cash equivalents	US$ in thousands	1,124,800	768,032	254,454	24,743	11,008
Short-term investments	US$ in thousands	—	—	—	—	—
Total current liabilities	US$ in thousands	1,851,890	1,177,930	1,119,510	74,484	104,739
Cash ratio		0.61	0.65	0.23	0.33	0.11

December 31, 2023 calculation

Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($1,124,800K + $—K) ÷ $1,851,890K
= 0.61

The cash ratio of Civitas Resources Inc has shown variability over the past five years. The ratio has fluctuated between 0.20 and 0.75, indicating the company's ability to cover its current liabilities with its cash and cash equivalents.

In 2023, the cash ratio stands at 0.75, reflecting an increase from the previous year. This suggests that Civitas Resources Inc has a higher level of cash and cash equivalents relative to its current liabilities, which may signify improved liquidity and financial health.

Comparatively, in 2021, the cash ratio was 0.25, indicating a lower ability to cover current liabilities with cash reserves. However, this ratio improved in the subsequent years.

Overall, the trend in the cash ratio of Civitas Resources Inc suggests fluctuations in the company's liquidity position. It is essential for the company to maintain a healthy cash ratio to meet its short-term obligations effectively and sustain its operations.