Matador Resources Company (MTDR)

Cash ratio

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Cash and cash equivalents	US$ in thousands	23,033	52,662	505,179	48,135	57,916
Short-term investments	US$ in thousands	—	—	—	—	—
Total current liabilities	US$ in thousands	995,357	685,275	575,873	464,837	290,936
Cash ratio		0.02	0.08	0.88	0.10	0.20

December 31, 2024 calculation

Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($23,033K + $—K) ÷ $995,357K
= 0.02

The cash ratio for Matador Resources Company has shown fluctuations over the years based on the provided data. As of December 31, 2020, the cash ratio was 0.20, indicating that the company had $0.20 in cash available for every $1 of current liabilities. This ratio decreased to 0.10 by December 31, 2021, suggesting a lower level of liquidity compared to the previous year.

However, there was a significant improvement in liquidity by December 31, 2022, with the cash ratio reaching 0.88. This implies that the company had $0.88 in cash for every $1 of current liabilities, reflecting a stronger liquidity position.

Subsequently, by December 31, 2023, the cash ratio declined sharply to 0.08, signaling a decrease in the company's ability to cover its short-term obligations with cash on hand.

Lastly, as of December 31, 2024, the cash ratio further decreased to 0.02, indicating a continued decrease in liquidity and a potential challenge in meeting short-term financial obligations solely from cash reserves.

Overall, fluctuations in the cash ratio of Matador Resources Company over the years suggest varying levels of liquidity and the importance of closely monitoring the company's ability to meet short-term liabilities with available cash resources.