Matador Resources Company (MTDR)

Cash ratio

		Dec 31, 2024	Sep 30, 2024	Jun 30, 2024	Mar 31, 2024	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
Cash and cash equivalents	US$ in thousands	23,033	23,277	15,242	23,208	52,662	25,935	22,303	448,723	505,179	400,484	230,394	63,001	48,135	73,128	44,632	17,924	57,916	41,813	20,573	27,063
Short-term investments	US$ in thousands	—	-2,336	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—
Total current liabilities	US$ in thousands	995,357	965,955	856,541	851,341	685,275	722,327	686,972	601,372	575,873	625,189	609,139	537,934	464,837	472,752	422,580	376,412	290,936	286,359	344,769	359,898
Cash ratio		0.02	0.02	0.02	0.03	0.08	0.04	0.03	0.75	0.88	0.64	0.38	0.12	0.10	0.15	0.11	0.05	0.20	0.15	0.06	0.08

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 of Matador Resources Company has shown fluctuations over the analyzed period from March 31, 2020, to December 31, 2024. The cash ratio measures the company's ability to cover its short-term obligations with its available cash and cash equivalents.

The cash ratio started at a relatively low level of 0.08 on March 31, 2020, indicating a limited ability to cover short-term liabilities with cash alone. Over the following quarters, the ratio decreased to 0.06 by June 30, 2020, before showing an improvement to 0.15 by September 30, 2020, and further to 0.20 by December 31, 2020.

However, the ratio then declined to 0.05 on March 31, 2021, suggesting a lower proportion of cash to cover short-term obligations. The ratio improved again to 0.11 on June 30, 2021, and reached 0.15 by September 30, 2021. It then decreased to 0.10 by December 31, 2021, indicating a reduction in the company's ability to cover its short-term liabilities with cash.

From March 31, 2022, the cash ratio experienced a significant increase, reaching 0.38 on June 30, 2022, and further climbing to 0.64 by September 30, 2022, and 0.88 by December 31, 2022. This substantial improvement suggests a stronger ability to meet short-term obligations with cash reserves.

However, the ratio dropped to 0.75 on March 31, 2023, before decreasing significantly to 0.03 by June 30, 2023, and remaining low at 0.04 by September 30, 2023. The ratio then slightly rose to 0.08 by December 31, 2023, but dropped again to 0.03 by March 31, 2024, and remained at 0.02 for the subsequent quarters.

Overall, the fluctuating trend in Matador Resources Company's cash ratio indicates varying levels of liquidity and ability to cover short-term obligations with cash reserves over the analyzed period. It is essential for the company to maintain a sufficient cash position to ensure financial stability and meet its short-term commitments effectively.