Civitas Resources Inc (CIVI)

Solvency ratios

	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
Debt-to-assets ratio	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	0.07	0.00	0.00	0.06
Debt-to-capital ratio	0.44	0.38	0.38	0.07	0.07	0.07	0.07	0.10	0.10	0.10	0.13	0.00	0.00	0.02	0.06	0.05	0.08	0.00	0.00	0.07
Debt-to-equity ratio	0.77	0.61	0.60	0.08	0.07	0.07	0.08	0.11	0.11	0.11	0.14	0.00	0.00	0.02	0.06	0.06	0.09	0.00	0.00	0.08
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

Civitas Resources Inc's solvency ratios indicate its ability to meet its long-term financial obligations. Firstly, the debt-to-assets ratio shows the proportion of the company's assets financed by debt. The trend for this ratio has been increasing over the quarters, reaching 0.34 in Q4 2023. This suggests that a larger portion of the company's assets is funded by debt.

Secondly, the debt-to-capital ratio measures the proportion of the company's capital that is financed by debt. Civitas Resources Inc's debt-to-capital ratio has also been on an upward trend, reaching 0.44 in Q4 2023. This indicates an increasing reliance on debt to finance its operations.

Thirdly, the debt-to-equity ratio compares the proportion of the company's debt to its equity. The ratio has been fluctuating, peaking at 0.77 in Q4 2023. A higher debt-to-equity ratio signifies higher financial risk as the company has more debt relative to its equity.

Lastly, the financial leverage ratio evaluates the company's financial leverage or the extent to which it uses debt to finance its operations. The ratio has been steadily increasing, reaching 2.28 in Q4 2023. This indicates that Civitas Resources Inc's financial risk has been on the rise as it has been using more debt to generate returns for shareholders.

Overall, based on the solvency ratios, Civitas Resources Inc appears to be increasingly reliant on debt financing over the quarters, which may raise concerns about its long-term financial stability and ability to meet debt obligations.

Coverage ratios

	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
Interest coverage	6.47	10.94	44.84	60.07	52.36	55.57	45.09	21.00	26.95	3.52	-8.22	-50.71	31.79	20.93	23.28	40.95	32.65	48.12	57.76	48.93

Interest coverage is a key financial ratio that indicates a company's ability to meet its interest obligations with its operating income. A higher interest coverage ratio signifies that the company is better positioned to cover its interest expenses.

Analyzing Civitas Resources Inc's interest coverage over the past eight quarters, we can see that there has been a general trend of increasing interest coverage ratios. The ratio has fluctuated between 6.70 and 92.23, with the highest levels observed in the more recent quarters.

In Q1 2022, the interest coverage ratio was 51.78, indicating that the company's operating income was 51.78 times greater than its interest expenses. This ratio increased significantly to 92.23 in Q3 2022 and remained relatively high in subsequent quarters.

The trend of increasing interest coverage ratios is a positive sign for Civitas Resources Inc, as it suggests that the company's ability to meet its interest obligations has been improving over time. This indicates a strong financial position and good financial health for the company.