Civitas Resources Inc (CIVI)

Current 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
Total current assets	US$ in thousands	2,144,410	948,745	3,413,210	956,241	1,328,430	1,187,770	1,019,460	674,103	719,937	159,918	142,054	104,903	92,405	89,840	103,287	164,853	110,516	119,228	92,834	119,791
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
Current ratio		1.16	0.47	2.80	0.90	1.13	0.94	0.69	0.50	0.64	0.61	0.62	1.11	1.24	1.26	1.74	1.71	1.06	1.15	1.05	1.19

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 significant fluctuations over the past eight quarters. In Q2 2023, the company had a notably high current ratio of 2.80, indicating a strong ability to cover its short-term obligations with its current assets. This suggests that Civitas Resources had a healthy liquidity position at that time.

However, in Q3 2023, the current ratio dropped drastically to 0.47, signaling a potential liquidity issue or difficulty in meeting short-term obligations with current assets. This sharp decline could raise concerns about the company's ability to manage its short-term debt obligations effectively.

In the most recent quarter, Q4 2023, the current ratio improved to 1.16 but still remains below the ideal benchmark of 2:1. Although the ratio has increased from the previous quarter, it indicates the company may still be facing liquidity challenges.

Overall, the fluctuating trend in Civitas Resources Inc's current ratio suggests inconsistencies in the management of current assets and liabilities, which may require further investigation to understand the underlying factors contributing to these fluctuations and take appropriate corrective actions.