Civitas Resources Inc (CIVI)

Current ratio

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Total current assets	US$ in thousands	2,144,410	1,328,430	719,937	92,405	110,516
Total current liabilities	US$ in thousands	1,851,890	1,177,930	1,119,510	74,484	104,739
Current ratio		1.16	1.13	0.64	1.24	1.06

December 31, 2023 calculation

Current ratio = Total current assets ÷ Total current liabilities
= $2,144,410K ÷ $1,851,890K
= 1.16

The current ratio of Civitas Resources Inc has shown some fluctuations over the past five years, ranging from 0.64 to 1.24. A current ratio above 1 indicates that the company has more current assets than current liabilities, which is generally considered favorable for short-term financial health.

In 2023, the current ratio improved to 1.16 compared to the previous year, indicating increased liquidity and the company's ability to meet its short-term obligations. However, it is important to note that the current ratio is still relatively close to 1, suggesting that Civitas Resources Inc may have a limited buffer to cover its short-term liabilities.

Over the five-year period, the company's current ratio has experienced fluctuations, with a notable improvement in 2020 followed by a slight decline in 2021 before recovering in 2022 and 2023. This variability in the current ratio may indicate changes in the company's liquidity position and ability to manage its short-term financial obligations.

Overall, while Civitas Resources Inc's current ratio has shown some improvement in recent years, analysts should continue to monitor this metric alongside other financial indicators to assess the company's overall liquidity and financial health.