Viper Energy Ut (VNOM)

Cash ratio

Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Cash and cash equivalents US$ in thousands 26,851 25,869 18,179 39,448 19,121
Short-term investments US$ in thousands
Total current liabilities US$ in thousands 48,694 33,256 21,946 24,466 44,898
Cash ratio 0.55 0.78 0.83 1.61 0.43

December 31, 2024 calculation

Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($26,851K + $—K) ÷ $48,694K
= 0.55

The cash ratio of Viper Energy Ut has shown some fluctuations over the years based on the data provided.

As of December 31, 2020, the cash ratio was 0.43, indicating that the company had 0.43 units of cash or cash equivalents for every dollar of current liabilities. This ratio improved significantly by December 31, 2021, reaching 1.61, which suggests a stronger liquidity position with more than sufficient cash to cover short-term obligations.

However, by December 31, 2022, the cash ratio decreased to 0.83, signaling a slight reduction in liquidity compared to the previous year. This trend continued into December 31, 2023, with a cash ratio of 0.78, demonstrating a further decrease in the company's ability to cover its short-term liabilities with cash on hand.

By December 31, 2024, the cash ratio decreased further to 0.55, indicating a continued decline in liquidity compared to the previous year. This trend may raise concerns about the company's ability to meet its short-term obligations using its available cash reserves.

In conclusion, while the cash ratio of Viper Energy Ut has shown some fluctuations over the years, it is important for the company to maintain a healthy balance between cash reserves and short-term liabilities to ensure financial stability and meet its obligations effectively.