Civitas Resources Inc (CIVI)

Debt-to-assets 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
Long-term debt US$ in thousands 4,493,530 4,841,520 4,889,550 4,437,620 4,785,730 3,699,890 3,048,510 393,693 393,293 392,897 392,508 492,123 491,710 160,000 199,000 0 0 20,000 58,000 59,000
Total assets US$ in thousands 14,944,100 15,007,800 15,041,300 15,084,000 14,097,300 12,841,600 10,171,000 7,675,050 7,971,400 7,688,800 7,414,430 7,033,750 6,741,030 1,937,080 1,916,180 1,208,290 1,182,810 1,148,780 1,190,230 1,264,070
Debt-to-assets ratio 0.30 0.32 0.33 0.29 0.34 0.29 0.30 0.05 0.05 0.05 0.05 0.07 0.07 0.08 0.10 0.00 0.00 0.02 0.05 0.05

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 of Civitas Resources Inc has shown fluctuations over the past few years, indicating changes in the company's capital structure. The ratio was relatively stable at low levels around 0.00 to 0.10 from March 2020 to June 2021. However, there was a significant spike in the ratio during March 2022 to June 2024, where it ranged from 0.05 to 0.34.

This upward trend in the debt-to-assets ratio suggests an increase in the company's reliance on debt to finance its assets during this period. A higher ratio indicates that a larger proportion of the company's assets are financed by debt, which may pose risks in terms of financial stability and repayment obligations.

The notable increase in the ratio from June 2023 to December 2024, peaking at 0.34, raises concerns about the level of leverage within Civitas Resources Inc. It is essential for investors and stakeholders to monitor this metric closely as high debt levels relative to assets can impact the company's financial health, creditworthiness, and overall performance in the long run.