Civitas Resources Inc (CIVI)

Quick ratio

Dec 31, 2024 Sep 30, 2024 Jun 30, 2024 Mar 31, 2024 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
Cash US$ in thousands 75,826 47,075 91,884 52,070 1,124,800 95,324 2,702,900 556,113 768,032 682,138 439,251 154,349 254,454 40,410 24,403 38,695 24,743 3,777 4,144 11,052
Short-term investments US$ in thousands — — — — — — — — — — — — — — — — — — — —
Receivables US$ in thousands 646,300 549,074 559,736 601,991 505,961 573,077 201,200 222,448 343,500 337,946 432,694 410,418 362,300 86,414 77,500 37,600 32,673 28,031 25,106 16,463
Total current liabilities US$ in thousands 2,205,090 2,114,110 2,289,740 2,579,700 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
Quick ratio 0.33 0.28 0.28 0.25 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

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 of Civitas Resources Inc, which measures the company's ability to cover its short-term obligations with its most liquid assets, has shown varying trends over the past few quarters. Initially, the quick ratio was quite low, indicating potential liquidity concerns with a ratio of 0.29 as of March 31, 2020.

Subsequently, there was an improvement in liquidity as the quick ratio increased to 0.81 by March 31, 2021, indicating the company had a stronger ability to meet its short-term obligations. However, the ratio decreased in the following quarters but remained above 0.4, signifying a relatively healthy liquidity position.

Notably, by June 30, 2023, there was a significant surge in the quick ratio to 2.38, which could be a result of factors such as a decrease in current liabilities or a substantial increase in current assets. This exceptionally high ratio may be a signal of very strong liquidity, potentially even an excess of highly liquid assets compared to short-term obligations.

The ratio decreased in the subsequent quarters but stayed above 0.2, indicating the company still had sufficient liquid assets to cover short-term liabilities. Overall, the quick ratio of Civitas Resources Inc has shown fluctuations but generally suggests a reasonable level of liquidity to meet its short-term financial commitments over the analyzed period.