Vital Energy Inc. (VTLE)

Quick 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
Cash	US$ in thousands	14,061	589,695	71,696	27,682	44,435	49,941	147,546	65,137	56,798	51,396	193,543	44,262	48,757	40,258	15,747	62,777	40,857	31,693	55,800	44,544
Short-term investments	US$ in thousands	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—
Receivables	US$ in thousands	299,170	199,838	143,672	147,071	199,170	162,876	205,767	213,549	163,298	122,657	90,609	67,704	76,155	60,298	69,113	75,588	112,895	82,369	76,610	107,520
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
Quick ratio		0.53	1.38	0.50	0.45	0.59	0.40	0.44	0.36	0.42	0.30	0.58	0.38	0.63	0.70	0.54	0.75	0.90	0.78	0.78	0.75

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, also known as the acid-test ratio, indicates the ability of Vital Energy Inc. to meet its short-term obligations with its most liquid assets. A quick ratio below 1.0 suggests that the company may have difficulty meeting its short-term obligations.

Over the past five quarters, the quick ratio for Vital Energy Inc. has fluctuated significantly, ranging from a low of 0.30 to a high of 1.38. The ratio has shown inconsistency and volatility, indicating potential liquidity challenges for the company.

The quick ratio was particularly weak in some quarters, such as March 31, 2021, and March 31, 2020, where it dropped to 0.38 and 0.54, respectively. These low ratios suggest that Vital Energy Inc. may have had difficulty meeting immediate obligations with its current liquid assets during those periods.

On the other hand, the quick ratio improved in September 30, 2023, when it reached 1.38, indicating a better ability to cover short-term liabilities with liquid assets. However, this improvement should be carefully monitored over future quarters to assess the company's ongoing liquidity position.

In conclusion, the fluctuating trend of the quick ratio for Vital Energy Inc. suggests that the company may need to carefully manage its liquidity position to ensure it can meet its short-term obligations consistently. Efforts to stabilize and strengthen the quick ratio would be advisable to enhance the company's financial stability and resilience.