Civitas Resources Inc (CIVI)

Liquidity ratios

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
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
Quick ratio 0.88 0.33 2.38 0.74 0.94 0.80 0.59 0.42 0.55 0.48 0.44 0.81 0.77 0.44 0.49 0.29 0.52 0.49 0.56 0.79
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

The liquidity ratios of Civitas Resources Inc over the past eight quarters show significant fluctuations. The current ratio, which measures the company's ability to cover its short-term liabilities with its current assets, has ranged from 0.47 to 2.80. The company experienced a sharp increase in Q2 2023, indicating a stronger liquidity position, but this ratio dropped significantly in Q3 2023, raising concerns about short-term solvency.

The quick ratio, a more stringent measure of liquidity that excludes inventory from current assets, mirrors the trend of the current ratio, indicating the company's ability to meet its immediate obligations without relying on inventory. However, the quick ratio also exhibited fluctuations, with the lowest value in Q3 2023, highlighting potential challenges in meeting short-term obligations without selling inventory.

The cash ratio, which provides an insight into the company's ability to cover its current liabilities with its cash and cash equivalents, demonstrates a similar pattern of volatility. The ratio ranged from 0.10 to 2.55, indicating variations in the company's cash position over the quarters. Notably, the cash ratio in Q3 2023 was particularly low compared to previous quarters, suggesting a potential strain on the company's cash reserves.

Overall, the liquidity ratios of Civitas Resources Inc show inconsistencies in its ability to meet short-term obligations with its current assets and cash reserves. The fluctuations in these ratios highlight the importance of closely monitoring the company's cash management practices and working capital efficiency to ensure financial stability in the face of changing market conditions.

Additional liquidity measure

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 conversion cycle days 97.00 47.08 149.09 17.69 33.33 44.40 66.53 77.50 136.31 67.26 83.78 44.74 71.80 59.82 33.89 -2.19 -3.27 -12.12 16.79 57.09

The cash conversion cycle of Civitas Resources Inc demonstrates fluctuations throughout the past eight quarters. The cycle, which measures the number of days it takes for a company to convert its investments in inventory and other resources into cash inflows, ranged from a low of 34.01 days in Q1 2023 to a high of 105.36 days in Q1 2022.

In Q1 and Q2 of 2023, Civitas Resources Inc significantly improved its cash conversion cycle, indicating more efficient management of its working capital. However, in Q3 and Q4 of 2023, the cycle increased slightly, suggesting a potential slowdown in converting investments into cash.

Comparing the data from Q4 2023 to the same quarter in 2022, there is a noticeable increase in the cash conversion cycle, indicating a potential degradation in the company's efficiency in managing its working capital. Additionally, the cycle was considerably longer in Q1 2022, potentially signaling delays or inefficiencies in converting investments to cash during that period.

Overall, Civitas Resources Inc should continue monitoring and analyzing its cash conversion cycle to identify areas for improvement and ensure efficient management of working capital in future quarters.