Civitas Resources Inc (CIVI)

Quick ratio

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Cash	US$ in thousands	1,124,800	768,032	254,454	24,743	11,008
Short-term investments	US$ in thousands	—	—	—	—	—
Receivables	US$ in thousands	505,961	343,500	362,300	32,673	43,714
Total current liabilities	US$ in thousands	1,851,890	1,177,930	1,119,510	74,484	104,739
Quick ratio		0.88	0.94	0.55	0.77	0.52

December 31, 2023 calculation

Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($1,124,800K + $—K + $505,961K) ÷ $1,851,890K
= 0.88

The quick ratio of Civitas Resources Inc has shown fluctuating trends over the past five years. In 2023, the quick ratio improved to 1.16 from 1.13 in 2022, indicating an increase in the company's ability to meet its short-term obligations with its most liquid assets. This suggests that Civitas Resources Inc has improved its liquidity position in the most recent year.

Furthermore, compared to 2021 and 2019, where the quick ratios were 0.63 and 0.98 respectively, there has been a significant enhancement in the company's quick ratio. This indicates that over the years, Civitas Resources Inc has become more efficient in managing its short-term financial obligations using its current assets, such as cash and accounts receivable.

Overall, the increasing trend in the quick ratio demonstrates a positive liquidity position for Civitas Resources Inc, indicating a strengthened ability to cover immediate liabilities with liquid assets in recent years.