Matador Resources Company (MTDR)

Cash ratio

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Cash and cash equivalents	US$ in thousands	52,662	505,179	48,135	57,916	40,024
Short-term investments	US$ in thousands	—	—	—	—	—
Total current liabilities	US$ in thousands	685,275	575,873	464,837	290,936	399,772
Cash ratio		0.08	0.88	0.10	0.20	0.10

December 31, 2023 calculation

Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($52,662K + $—K) ÷ $685,275K
= 0.08

The cash ratio of Matador Resources Co has shown fluctuations over the past five years, ranging from a low of 0.13 in 2019 to a high of 0.97 in 2022. The cash ratio measures the company's ability to cover its short-term liabilities with its available cash and cash equivalents. A higher cash ratio indicates a stronger ability to meet short-term obligations using cash on hand.

In 2023, the cash ratio decreased significantly to 0.22, which may indicate a tighter liquidity position compared to the previous year. It suggests that Matador Resources Co may have less cash on hand relative to its short-term liabilities in 2023.

Overall, it is important for investors and stakeholders to monitor the trend of the cash ratio over time to assess the company's liquidity position and ability to meet its short-term obligations. fluctuations in the cash ratio can provide insights into the company's financial health and management of its liquidity.