Matador Resources Company (MTDR)

Current ratio

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Total current assets	US$ in thousands	715,872	1,071,830	371,305	261,629	278,492
Total current liabilities	US$ in thousands	685,275	575,873	464,837	290,936	399,772
Current ratio		1.04	1.86	0.80	0.90	0.70

December 31, 2023 calculation

Current ratio = Total current assets ÷ Total current liabilities
= $715,872K ÷ $685,275K
= 1.04

The current ratio of Matador Resources Co has fluctuated over the past five years. In 2023, the current ratio stood at 1.04, indicating that the company had just enough current assets to cover its current liabilities. This represents a decrease from 2022 when the current ratio was 1.86, showing a deterioration in short-term liquidity.

In 2021, the current ratio was 0.80, suggesting that the company had insufficient current assets to cover its current liabilities, indicating potential financial strain. However, the current ratio improved in 2022 to 0.90, although it was still below 1, highlighting ongoing liquidity challenges.

The lowest current ratio in the past five years was in 2019 at 0.70, indicating a significant imbalance between current assets and current liabilities. The gradual improvement in the current ratio since then suggests that Matador Resources Co has made efforts to strengthen its liquidity position, although further improvements are necessary to ensure financial stability and meet short-term obligations effectively.