Vital Energy Inc. (VTLE)

Solvency ratios

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
Debt-to-assets ratio 0.31 0.44 0.42 0.40 0.41 0.42 0.45 0.52 0.56 0.60 0.73 0.78 0.82 0.77 0.67 2.37 0.52 0.43 0.39 0.42
Debt-to-capital ratio 0.37 0.52 0.50 0.49 0.50 0.54 0.66 0.77 0.74 0.86 1.13 1.06 1.02 0.90 0.77 0.58 0.58 0.48 0.43 0.48
Debt-to-equity ratio 0.58 1.09 1.01 0.95 1.00 1.18 1.90 3.36 2.78 6.02 — — — 8.61 3.35 1.37 1.39 0.91 0.77 0.91
Financial leverage ratio 1.85 2.50 2.38 2.40 2.45 2.80 4.23 6.43 4.97 10.08 — — — 11.17 4.97 0.58 2.69 2.11 1.95 2.15

The solvency ratios of Vital Energy Inc. indicate the company's ability to meet its long-term financial obligations.

1. Debt-to-assets ratio: The trend shows a fluctuation over time but is relatively stable in recent periods, ranging from 0.31 to 0.73. This ratio suggests the company relies on debt to finance its assets at varying levels.

2. Debt-to-capital ratio: This ratio also demonstrates fluctuations but with a general increasing trend, ranging from 0.37 to 1.13. It indicates the proportion of the company's capital that is debt-financed, showing an increasing reliance on debt financing over time.

3. Debt-to-equity ratio: The trend reveals significant variability, with ratios from 0.58 to 10.08. This indicates the extent to which the company's operations are financed through debt versus equity, highlighting periods of high leverage and potential financial risk.

4. Financial leverage ratio: There is substantial variability in this ratio, ranging from 0.58 to 11.17. It reflects the level of financial risk and the degree to which the company's operations are leveraged through debt, with higher ratios suggesting higher financial leverage.

In conclusion, while Vital Energy Inc. has maintained a relatively stable debt-to-assets ratio, the increasing trends in the debt-to-capital and financial leverage ratios suggest a growing reliance on debt financing, potentially indicating increased financial risk and the need for careful monitoring of the company's solvency position.

Coverage ratios

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
Interest coverage 4.42 3.47 6.37 7.93 6.09 6.77 5.26 2.14 2.31 -1.15 -4.85 -8.73 -7.36 -9.21 -10.99 -2.64 -4.61 1.83 7.11 4.88

Interest coverage measures a company's ability to meet its interest payments on outstanding debt. It is calculated by dividing earnings before interest and taxes (EBIT) by interest expenses.

Vital Energy Inc.'s interest coverage has fluctuated over the past few years, ranging from negative values to positive values. A higher interest coverage ratio indicates that the company is more capable of covering its interest expenses with its operating income.

In the most recent quarter, the interest coverage ratio was 4.42, indicating the company generated 4.42 times the amount needed to cover its interest expenses. This is an improvement from the previous quarter when the ratio was 3.47.

However, it is important to note that the interest coverage ratio has shown significant volatility, with some quarters showing negative values, which may indicate financial distress and an inability to meet interest obligations from operating earnings.

Overall, the trend in Vital Energy Inc.'s interest coverage ratio suggests some variability in the company's ability to cover its interest expenses, indicating the need for close monitoring of its financial health and debt repayment capability.