Vital Energy Inc. (VTLE)

Cash ratio

		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	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Cash and cash equivalents	US$ in thousands	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	40,857	31,693	55,800	44,544
Short-term investments	US$ in thousands	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—
Total current liabilities	US$ in thousands	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	170,896	145,817	170,678	203,622
Cash ratio		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	0.24	0.22	0.33	0.22

December 31, 2023 calculation

Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($14,061K + $—K) ÷ $595,589K
= 0.02

The cash ratio depicts Vital Energy Inc.'s ability to cover its short-term liabilities with its cash and cash equivalents. A high cash ratio implies a stronger ability to meet obligations, while a low ratio may indicate liquidity issues.

In the observed period, the cash ratio of Vital Energy Inc. fluctuated significantly, ranging from as low as 0.02 to as high as 1.03. This indicates varying levels of liquidity and potentially differing approaches to managing cash.

Notably, the cash ratio was relatively low in some quarters, such as March 2020 and December 2020, which could signal a need for better cash management practices during those periods. Conversely, the ratio spiked in June 2021 to 0.40, suggesting a strong cash position relative to short-term liabilities at that time.

Overall, a comprehensive analysis of the cash ratio trend over the reported periods could offer insights into Vital Energy Inc.'s liquidity management strategies and financial health.