Matador Resources Company (MTDR)

Cash 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 and cash equivalents	US$ in thousands	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	40,024	15,709	59,950	20,758
Short-term investments	US$ in thousands	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—
Total current liabilities	US$ in thousands	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	399,772	403,357	336,775	328,423
Cash ratio		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	0.10	0.04	0.18	0.06

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 measures a company's ability to cover its short-term liabilities with its available cash and cash equivalents. A higher cash ratio indicates a stronger liquidity position.

Looking at the trend of Matador Resources Co's cash ratio over the past eight quarters, we can observe fluctuations in the ratio. In Q4 2023, the cash ratio stood at 0.22, indicating that the company had $0.22 in cash and cash equivalents for every $1 of current liabilities. This ratio decreased compared to the previous quarter (Q3 2023), where it was 0.16.

It is worth noting that the cash ratio in Q4 2023 is lower than the ratios observed in Q2 2023 and Q1 2023, which were 0.14 and 0.86, respectively. This suggests a decrease in the company's liquidity position compared to Q1 2023 when Matador Resources Co had a relatively strong cash position to cover its short-term obligations.

On a positive note, compared to the same period of the previous year (Q4 2022), where the cash ratio was 0.97, the current ratio is lower but still above the Q2 2022 and Q1 2022 levels. This indicates some variability in Matador Resources Co's cash holdings over the past quarters.

Overall, the fluctuating trend in the cash ratio of Matador Resources Co may indicate varying levels of liquidity and the company's ability to meet its short-term financial obligations with cash on hand. Further analysis of the company's cash management strategies and overall financial performance would be necessary to better understand the implications of these fluctuations in the cash ratio.