Civitas Resources Inc (CIVI)

Quick ratio

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Cash	US$ in thousands	75,826	1,124,800	768,032	254,454	24,743
Short-term investments	US$ in thousands	—	—	—	—	—
Receivables	US$ in thousands	646,300	505,961	343,500	362,300	32,673
Total current liabilities	US$ in thousands	2,205,090	1,851,890	1,177,930	1,119,510	74,484
Quick ratio		0.33	0.88	0.94	0.55	0.77

December 31, 2024 calculation

Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($75,826K + $—K + $646,300K) ÷ $2,205,090K
= 0.33

The quick ratio, also known as the acid-test ratio, measures a company's ability to meet its short-term obligations with its most liquid assets. A quick ratio below 1 indicates potential liquidity issues.

Civitas Resources Inc's quick ratio has shown fluctuations over the years:

- On December 31, 2020, the quick ratio was 0.77, indicating that the company had $0.77 in liquid assets available to cover each $1 of current liabilities.
- By December 31, 2021, the quick ratio decreased to 0.55, signaling a potential decrease in the company's ability to cover its short-term obligations.
- The ratio improved by December 31, 2022, reaching 0.94, suggesting a better ability to meet short-term obligations compared to the previous year.
- On December 31, 2023, the quick ratio slightly decreased to 0.88, indicating a stable but still relatively low level of liquidity.
- However, by December 31, 2024, Civitas Resources Inc's quick ratio dropped significantly to 0.33, implying a potential challenge in meeting short-term obligations with available liquid assets.

Overall, the trend in Civitas Resources Inc's quick ratio over the years suggests fluctuating levels of liquidity, with a notable decline in the most recent year, which may require further investigation to understand the underlying reasons for this decrease in liquidity.