Viper Energy Ut (VNOM)

Current ratio

		Sep 30, 2024	Jun 30, 2024	Mar 31, 2024	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
Total current assets	US$ in thousands	320,180	205,384	189,820	143,517	262,130	105,794	133,270	118,620	124,290	139,857	136,702	111,149	111,324	88,770	59,544	53,994	54,764	43,180	79,341	72,664
Total current liabilities	US$ in thousands	44,208	29,091	54,885	33,256	47,491	28,079	29,771	21,946	25,081	26,842	37,104	24,466	61,565	68,960	62,855	44,898	44,189	46,406	24,309	13,432
Current ratio		7.24	7.06	3.46	4.32	5.52	3.77	4.48	5.41	4.96	5.21	3.68	4.54	1.81	1.29	0.95	1.20	1.24	0.93	3.26	5.41

September 30, 2024 calculation

Current ratio = Total current assets ÷ Total current liabilities
= $320,180K ÷ $44,208K
= 7.24

The current ratio of Viper Energy Ut has displayed fluctuations over the past several quarters. The current ratio measures the company's ability to pay its short-term obligations with its current assets. A higher current ratio is generally preferred as it indicates a stronger liquidity position.

Looking at the data provided, the current ratio ranged from a low of 0.93 in June 2021 to a high of 7.24 in September 2024. The current ratio has shown an improving trend in recent quarters, with the ratio consistently above 3.0. This indicates that Viper Energy Ut has been maintaining a healthy level of current assets relative to its current liabilities, suggesting a strong ability to cover its short-term obligations.

The significant increase in the current ratio from the previous quarter indicates an improvement in liquidity and the company's ability to easily meet its short-term financial obligations. It is essential to note that a sustained high current ratio over multiple periods could signify an inefficient use of assets and potential opportunities for the company to optimize its asset management.

In conclusion, Viper Energy Ut's current ratio has shown positive signs of financial health and liquidity management in recent quarters, as reflected in the higher current ratio figures. It demonstrates the company's capacity to meet its short-term obligations comfortably and suggests a favorable position for potential operational and strategic decisions.