Vital Energy Inc. (VTLE)
Cash ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 40,179 | 14,061 | 44,435 | 56,798 | 48,757 |
| Short-term investments | US$ in thousands | — | — | — | — | — |
| Total current liabilities | US$ in thousands | 601,139 | 595,589 | 415,276 | 526,913 | 197,595 |
| Cash ratio | 0.07 | 0.02 | 0.11 | 0.11 | 0.25 |
December 31, 2024 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($40,179K
+ $—K)
÷ $601,139K
= 0.07
The cash ratio of Vital Energy Inc. has shown a declining trend over the years based on the provided data. As of December 31, 2020, the company had a cash ratio of 0.25, indicating that it had $0.25 in cash for every $1 of current liabilities. However, by December 31, 2024, the cash ratio had decreased to 0.07, suggesting a decrease in the company's ability to cover its short-term obligations with its cash reserves.
A declining cash ratio could be a cause for concern as it may indicate that the company is becoming less liquid and may face difficulties in meeting its immediate financial obligations. It is important for Vital Energy Inc. to monitor and manage its cash position effectively to ensure it maintains an adequate level of liquidity to handle any unexpected cash needs or financial challenges that may arise.
Peer comparison
Dec 31, 2024