Vital Energy Inc. (VTLE)

Current ratio

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Total current assets	US$ in thousands	370,919	245,791	235,857	136,590	200,479
Total current liabilities	US$ in thousands	595,589	415,276	526,913	197,595	170,896
Current ratio		0.62	0.59	0.45	0.69	1.17

December 31, 2023 calculation

Current ratio = Total current assets ÷ Total current liabilities
= $370,919K ÷ $595,589K
= 0.62

The current ratio of Vital Energy Inc. has fluctuated over the past five years, ranging from 0.45 in 2021 to 1.17 in 2019. A current ratio below 1 indicates that the company may have difficulty meeting its short-term obligations using its current assets alone.

The current ratio decreased from 2019 to 2021, reaching its lowest point at 0.45 in 2021, signaling potential liquidity concerns. However, the current ratio improved in 2022 and 2023 to 0.59 and 0.62, respectively, but still remained below 1.

While the current ratio has shown some improvement in recent years, it is important for Vital Energy Inc. to continue monitoring and managing its liquidity position to ensure it can cover its short-term liabilities effectively. Further analysis of the company's asset composition and short-term financing strategies may provide more insights into its liquidity management practices.