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.
Peer comparison
Dec 31, 2024