Viper Energy Ut (VNOM)
Quick ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 25,869 | 18,179 | 39,448 | 19,121 | 3,602 |
| Short-term investments | US$ in thousands | — | — | — | — | — |
| Receivables | US$ in thousands | 813 | 81,657 | 68,568 | 32,210 | 58,089 |
| Total current liabilities | US$ in thousands | 33,256 | 21,946 | 24,466 | 44,898 | 13,432 |
| Quick ratio | 0.80 | 4.55 | 4.41 | 1.14 | 4.59 |
December 31, 2023 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($25,869K
+ $—K
+ $813K)
÷ $33,256K
= 0.80
The quick ratio of Viper Energy Ut has exhibited significant fluctuations over the past five years. In 2023, the quick ratio decreased to 0.80 from 4.55 in 2022, indicating a substantial decline in the company's ability to meet its short-term obligations with its most liquid assets. This sharp drop raises concerns about the company's liquidity position in the current year.
Comparing the 2023 ratio with 2021 and 2019, where the quick ratio was 4.41 and 4.59 respectively, there has been a remarkable reduction in liquidity in 2023. The company appears to have a weaker ability to cover its current liabilities with its quick assets in 2023 compared to the earlier years.
In 2020, the quick ratio was 1.14, suggesting that the company improved its liquidity position in that year compared to 2023. It is essential for stakeholders to closely monitor the company's ability to maintain an adequate level of quick assets to meet its short-term obligations going forward, given the significant fluctuations in the quick ratio observed in recent years.
Peer comparison
Dec 31, 2023