Viper Energy Ut (VNOM)

Quick ratio

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Cash	US$ in thousands	26,851	25,869	18,179	39,448	19,121
Short-term investments	US$ in thousands	—	—	—	—	—
Receivables	US$ in thousands	—	—	—	—	—
Total current liabilities	US$ in thousands	48,694	33,256	21,946	24,466	44,898
Quick ratio		0.55	0.78	0.83	1.61	0.43

December 31, 2024 calculation

Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($26,851K + $—K + $—K) ÷ $48,694K
= 0.55

The quick ratio of Viper Energy Ut has exhibited varying trends over the past five years. It stood at 0.43 as of December 31, 2020, indicating a relatively low level of liquidity to cover its short-term obligations with its most liquid assets. However, there was a significant improvement in the quick ratio to 1.61 by December 31, 2021, suggesting a better ability to meet current liabilities using quick assets.

Subsequently, the quick ratio decreased to 0.83 by December 31, 2022, and further declined to 0.78 by December 31, 2023, indicating a potential deterioration in the company's liquidity position during these periods. The decreasing trend in the quick ratio suggests a reduction in the ability to cover short-term obligations without relying on inventory or other less liquid assets.

By the end of December 31, 2024, the quick ratio slightly improved to 0.55. Although still below the ideal ratio of 1, this could indicate some efforts to enhance liquidity. Overall, the fluctuating quick ratio values reflect changes in Viper Energy Ut's liquidity position over the years, with the need for continuous monitoring and potential adjustments to maintain a healthy liquidity level.