Civitas Resources Inc (CIVI)

Debt-to-assets ratio

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Long-term debt	US$ in thousands	4,493,530	4,785,730	393,293	491,710	0
Total assets	US$ in thousands	14,944,100	14,097,300	7,971,400	6,741,030	1,182,810
Debt-to-assets ratio		0.30	0.34	0.05	0.07	0.00

December 31, 2024 calculation

Debt-to-assets ratio = Long-term debt ÷ Total assets
= $4,493,530K ÷ $14,944,100K
= 0.30

The debt-to-assets ratio for Civitas Resources Inc has shown a fluctuating trend over the last five years. In December 31, 2020, the company had a debt-to-assets ratio of 0.00, indicating that it had no debt relative to its total assets. This suggests a strong financial position with minimal reliance on debt financing.

However, over the subsequent years, there was an increase in the debt-to-assets ratio. By December 31, 2021, the ratio had risen to 0.07, and then decreased slightly to 0.05 by December 31, 2022. This slight increase suggests a slight increase in the company's debt relative to its total assets, but it remains relatively low.

In the following years, the debt-to-assets ratio increased more significantly. By December 31, 2023, the ratio had climbed to 0.34, indicating that the company's debt level had become a significant portion of its total assets. This could potentially raise concerns about the company's financial stability and ability to manage its debt obligations.

By December 31, 2024, the ratio decreased slightly to 0.30, showing some improvement from the previous year but still indicating a relatively high level of debt compared to assets. It would be important for investors and stakeholders to monitor this ratio closely to assess the company's leverage and financial risk moving forward.