Viper Energy Ut (VNOM)

Current ratio

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Total current assets	US$ in thousands	143,517	118,620	111,149	53,994	72,664
Total current liabilities	US$ in thousands	33,256	21,946	24,466	44,898	13,432
Current ratio		4.32	5.41	4.54	1.20	5.41

December 31, 2023 calculation

Current ratio = Total current assets ÷ Total current liabilities
= $143,517K ÷ $33,256K
= 4.32

The current ratio of Viper Energy Ut has fluctuated over the past five years, ranging from a low of 1.20 in 2020 to a high of 5.41 in both 2019 and 2022. The current ratio measures the company's ability to cover its short-term liabilities with its current assets. A higher current ratio is generally seen as favorable, indicating a stronger ability to meet short-term obligations.

In 2023, Viper Energy Ut's current ratio stands at 4.32, which is lower compared to 2022 but still relatively strong. This suggests that the company has sufficient current assets to cover its current liabilities, providing a buffer against potential liquidity challenges. However, a declining trend in the current ratio over the past two years may warrant further investigation into the company's liquidity management and working capital efficiency. Overall, Viper Energy Ut's current ratio indicates a healthy liquidity position, but ongoing monitoring is advisable to ensure continued financial stability.