Civitas Resources Inc (CIVI)

Financial leverage ratio

		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	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Total assets	US$ in thousands	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	1,206,320	1,199,740	1,145,340	1,103,390
Total stockholders’ equity	US$ in thousands	6,181,320	6,020,630	5,046,690	5,101,750	5,373,920	5,253,520	4,992,550	4,637,530	4,655,000	1,417,250	1,385,110	1,046,760	1,045,250	982,952	978,038	1,016,420	936,690	937,924	900,006	858,147
Financial leverage ratio		2.28	2.13	2.02	1.50	1.48	1.46	1.49	1.52	1.45	1.37	1.38	1.15	1.13	1.17	1.22	1.24	1.29	1.28	1.27	1.29

December 31, 2023 calculation

Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $14,097,300K ÷ $6,181,320K
= 2.28

The financial leverage ratio of Civitas Resources Inc has shown an increasing trend over the past eight quarters, indicating a rising level of financial leverage. The ratio has steadily risen from 1.48 in Q4 2022 to 2.28 in Q4 2023. This suggests that the company has been relying more on debt to finance its operations and growth.

The increase in the financial leverage ratio may imply that Civitas Resources Inc is taking on more debt relative to its equity, which could potentially increase financial risk and interest expense. A higher financial leverage ratio can magnify both returns and losses for shareholders, as well as impact the company's ability to meet its debt obligations in challenging economic conditions.

Further analysis of the company's debt structure and overall financial health would be necessary to fully assess the implications of the increasing financial leverage ratio. It is important for investors and stakeholders to closely monitor how Civitas Resources Inc manages its debt levels and capital structure moving forward.