Viper Energy Ut (VNOM)
Cash ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 25,869 | 18,179 | 39,448 | 19,121 | 3,602 |
| Short-term investments | US$ in thousands | — | — | — | — | — |
| Total current liabilities | US$ in thousands | 33,256 | 21,946 | 24,466 | 44,898 | 13,432 |
| Cash ratio | 0.78 | 0.83 | 1.61 | 0.43 | 0.27 |
December 31, 2023 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($25,869K
+ $—K)
÷ $33,256K
= 0.78
The cash ratio of Viper Energy Ut has fluctuated over the past five years. In 2023 and 2022, the cash ratio stood at 0.78 and 0.83, respectively, indicating a decrease compared to the high of 1.61 in 2021. The cash ratio in 2020 was relatively low at 0.43, and in 2019, it was even lower at 0.27.
The cash ratio measures the company's ability to cover its short-term liabilities using its available cash and cash equivalents. A higher cash ratio is generally preferred as it signifies a stronger ability to cover obligations. In the case of Viper Energy Ut, the company showed an increase in liquidity from 2019 to 2021 but experienced a decrease in 2023 and 2022.
It is essential for Viper Energy Ut to carefully manage its cash resources to ensure it can meet its short-term obligations and maintain financial stability, especially given the fluctuations seen in its cash ratio over the years. Further analysis of the company's cash management practices and overall financial health would be necessary to provide a more comprehensive assessment.
Peer comparison
Dec 31, 2023