Civitas Resources Inc (CIVI)

Current ratio

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Total current assets	US$ in thousands	988,318	2,144,410	1,328,430	719,937	92,405
Total current liabilities	US$ in thousands	2,205,090	1,851,890	1,177,930	1,119,510	74,484
Current ratio		0.45	1.16	1.13	0.64	1.24

December 31, 2024 calculation

Current ratio = Total current assets ÷ Total current liabilities
= $988,318K ÷ $2,205,090K
= 0.45

Civitas Resources Inc's current ratio has fluctuated over the past five years. As of December 31, 2020, the current ratio stood at 1.24, indicating that the company had $1.24 in current assets for every $1 in current liabilities. However, by December 31, 2021, the current ratio had decreased significantly to 0.64, suggesting a potential liquidity concern as current assets were insufficient to cover current liabilities.

The trend improved in the subsequent years, with the current ratio increasing to 1.13 as of December 31, 2022, and further to 1.16 by December 31, 2023. These improvements indicate that the company's liquidity position strengthened, with more current assets available to meet short-term obligations.

However, by December 31, 2024, the current ratio declined sharply to 0.45, signaling a potential liquidity risk for Civitas Resources Inc. This significant drop may raise concerns about the company's ability to cover its short-term liabilities with available current assets.

Overall, while there have been fluctuations in Civitas Resources Inc's current ratio over the years, management should closely monitor liquidity levels to ensure sufficient resources are available to meet short-term obligations and manage potential financial risks effectively.