Vital Energy Inc. (VTLE)

Cash ratio

		Dec 31, 2024	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
Cash and cash equivalents	US$ in thousands	40,179	22,192	56,564	423,325	14,061	589,695	71,696	27,682	44,435	49,941	147,546	65,137	56,798	51,396	193,543	44,262	48,757	40,258	15,747	62,777
Short-term investments	US$ in thousands	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—
Total current liabilities	US$ in thousands	601,139	626,332	617,420	609,335	595,589	571,702	433,745	391,507	415,276	527,273	799,376	775,502	526,913	574,811	489,675	292,243	197,595	143,108	157,789	185,684
Cash ratio		0.07	0.04	0.09	0.69	0.02	1.03	0.17	0.07	0.11	0.09	0.18	0.08	0.11	0.09	0.40	0.15	0.25	0.28	0.10	0.34

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. provides insight into the company's ability to cover its short-term obligations using its cash and cash equivalents. The cash ratio has shown fluctuations over the period analyzed, ranging from a low of 0.02 on December 31, 2023, to a high of 1.03 on September 30, 2023.

The ratio dipped below 0.1 multiple times, indicating a potential liquidity strain for the company during these periods. This suggests that Vital Energy Inc. may have had insufficient cash on hand to meet its short-term liabilities during those quarters. On the other hand, the ratio improved to above 0.5 on several occasions, demonstrating a stronger ability to cover short-term obligations with available cash.

The notable fluctuations in the cash ratio may be influenced by various factors such as changes in operating cash flows, investment activities, or the company's access to credit facilities. Investors and stakeholders should closely monitor Vital Energy Inc.'s cash position and liquidity management practices to assess its ability to meet financial obligations and sustain operations effectively.