Vital Energy Inc. (VTLE)

Current ratio

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Total current assets	US$ in thousands	466,556	370,919	245,791	235,857	136,590
Total current liabilities	US$ in thousands	601,139	595,589	415,276	526,913	197,595
Current ratio		0.78	0.62	0.59	0.45	0.69

December 31, 2024 calculation

Current ratio = Total current assets ÷ Total current liabilities
= $466,556K ÷ $601,139K
= 0.78

The current ratio of Vital Energy Inc. has been fluctuating over the past five years. As of December 31, 2020, the company had a current ratio of 0.69, indicating that it might have had difficulty covering its short-term obligations with its current assets at that time. Subsequently, the ratio decreased to 0.45 by December 31, 2021, suggesting a further deterioration in the company's ability to meet its short-term liabilities with its current assets.

There was a slight improvement in the current ratio to 0.59 by the end of 2022, possibly reflecting better management of current assets and liabilities. By December 31, 2023, the ratio increased to 0.62, indicating a continued but modest strengthening of the company's short-term liquidity position. Finally, as of December 31, 2024, the current ratio stood at 0.78, which suggests that Vital Energy Inc. had a better ability to cover its short-term obligations with its current assets compared to previous years.

Overall, the trend in Vital Energy Inc.'s current ratio indicates fluctuations in its short-term liquidity position over the five-year period, with some improvements in recent years but still showing room for enhancement to ensure the company can efficiently meet its short-term financial obligations.