Vital Energy Inc. (VTLE)

Quick ratio

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Cash	US$ in thousands	14,061	44,435	56,798	48,757	40,857
Short-term investments	US$ in thousands	—	—	—	—	—
Receivables	US$ in thousands	299,170	199,170	163,298	76,155	112,895
Total current liabilities	US$ in thousands	595,589	415,276	526,913	197,595	170,896
Quick ratio		0.53	0.59	0.42	0.63	0.90

December 31, 2023 calculation

Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($14,061K + $—K + $299,170K) ÷ $595,589K
= 0.53

The quick ratio of Vital Energy Inc. has exhibited fluctuations over the past five years, ranging from a low of 0.42 in 2021 to a high of 0.90 in 2019. The quick ratio measures the company's ability to meet its short-term obligations with its most liquid assets. A quick ratio below 1 indicates that the company may have difficulty meeting its short-term obligations without relying on the sale of inventory or other current assets.

In the most recent year, as of Dec 31, 2023, the quick ratio stands at 0.53, showing a decrease from the previous year's ratio of 0.59 in 2022. This signifies that Vital Energy Inc. may have a relatively lower ability to cover its current liabilities with its quick assets compared to the previous year. It is essential for the company to monitor and potentially improve its quick ratio to ensure its short-term liquidity position remains strong and sustainable.