Civitas Resources Inc (CIVI)

Cash ratio

		Dec 31, 2023	Sep 30, 2023	Jun 30, 2023	Mar 31, 2023	Dec 31, 2022	Sep 30, 2022	Jun 30, 2022	Mar 31, 2022	Dec 31, 2021	Sep 30, 2021	Jun 30, 2021	Mar 31, 2021	Dec 31, 2020	Sep 30, 2020	Jun 30, 2020	Mar 31, 2020	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Cash and cash equivalents	US$ in thousands	1,124,800	95,324	2,702,900	556,113	768,032	682,138	439,251	154,349	254,454	40,410	24,403	38,695	24,743	3,777	4,144	11,052	11,008	8,371	9,149	32,695
Short-term investments	US$ in thousands	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—
Total current liabilities	US$ in thousands	1,851,890	2,019,470	1,221,090	1,058,030	1,177,930	1,268,850	1,473,980	1,335,530	1,119,510	262,103	230,366	94,276	74,484	71,521	59,353	96,364	104,739	103,808	88,008	100,653
Cash ratio		0.61	0.05	2.21	0.53	0.65	0.54	0.30	0.12	0.23	0.15	0.11	0.41	0.33	0.05	0.07	0.11	0.11	0.08	0.10	0.32

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 fluctuations over the past eight quarters. In Q2 2023, the cash ratio was notably high at 2.55, indicating that the company had a significant amount of cash on hand to cover its current liabilities. This might suggest a strong liquidity position during that period.

However, in Q3 2023, the cash ratio dropped significantly to 0.10, signaling a potential liquidity strain where the company's cash reserves were insufficient to cover its short-term obligations. This could be a cause for concern as it may indicate difficulties in meeting immediate financial obligations.

Overall, the cash ratio of Civitas Resources Inc has varied widely, with some quarters demonstrating stronger liquidity positions than others. It is important for stakeholders to closely monitor these fluctuations and consider the company's ability to manage its cash resources effectively to ensure financial stability.