Vital Energy Inc. (VTLE)

Current 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
Total current assets	US$ in thousands	466,556	419,262	312,526	745,897	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
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
Current ratio		0.78	0.67	0.51	1.22	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

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 exhibited fluctuations over the period from March 31, 2020, to December 31, 2024. The current ratio started at a healthy level of 2.30 on March 31, 2020, indicating that the company had more than twice the current assets to cover its current liabilities. However, there was a decline in the current ratio in subsequent periods, reaching a low of 0.47 by March 31, 2021. This decrease may suggest possible liquidity challenges or an increase in short-term obligations relative to current assets during this period.

Subsequently, there were fluctuations in the current ratio with values ranging between 0.34 and 1.42 until December 31, 2023. Notably, the current ratio improved significantly to 1.22 on March 31, 2024, indicating that the company's ability to cover its short-term liabilities with current assets had strengthened. However, the ratio experienced a decline to 0.51 on June 30, 2024, indicating a potential deterioration in liquidity.

Overall, Vital Energy Inc.'s current ratio has demonstrated variability, suggesting fluctuations in the company's liquidity position and ability to meet short-term obligations with available current assets. It is important for the company to monitor and manage its current assets and liabilities effectively to maintain a healthy liquidity position and ensure smooth operations.