Vital Energy Inc. (VTLE)

Current 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
Total current assets	US$ in thousands	370,919	814,208	242,929	229,666	245,791	248,061	373,963	302,352	235,857	194,547	302,817	138,089	136,590	199,513	256,259	427,296	200,479	224,732	192,515	172,730
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
Current ratio		0.62	1.42	0.56	0.59	0.59	0.47	0.47	0.39	0.45	0.34	0.62	0.47	0.69	1.39	1.62	2.30	1.17	1.54	1.13	0.85

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 been fluctuating over the past few quarters. The current ratio, which measures the company's ability to cover its short-term liabilities with its current assets, has exhibited a downward trend from the end of 2020 to the middle of 2022, indicating potential liquidity concerns during this period.

The current ratio improved significantly in the last two quarters of 2022 and the first quarter of 2023, suggesting a healthier liquidity position for Vital Energy Inc. during these periods. However, this improvement was followed by a decline in the current ratio in the second quarter of 2023, raising some concerns again about the company's ability to meet its short-term obligations.

It is important to note that a current ratio below 1.0 may indicate potential liquidity issues and difficulties in meeting short-term obligations. Vital Energy Inc. experienced current ratios below 1.0 in several quarters, indicating a need for careful monitoring of the company's working capital management and potential liquidity risks.

Overall, the current ratio of Vital Energy Inc. has shown variations over the past few quarters, reflecting changes in the company's liquidity position and highlighting the importance of closely monitoring its financial health to ensure its ability to meet short-term obligations.