Matador Resources Company (MTDR)
Current ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Total current assets | US$ in thousands | 927,345 | 715,872 | 1,071,830 | 371,305 | 261,629 |
| Total current liabilities | US$ in thousands | 995,357 | 685,275 | 575,873 | 464,837 | 290,936 |
| Current ratio | 0.93 | 1.04 | 1.86 | 0.80 | 0.90 |
December 31, 2024 calculation
Current ratio = Total current assets ÷ Total current liabilities
= $927,345K ÷ $995,357K
= 0.93
The current ratio of Matador Resources Company has fluctuated over the past five years, indicating changes in its short-term liquidity position. In December 2020 and 2021, the company had current ratios of 0.90 and 0.80, respectively, reflecting a potential liquidity challenge as its current assets were not sufficient to cover its current liabilities.
However, there was a significant improvement in the current ratio in December 2022, which stood at 1.86. This increase suggests that Matador Resources had a healthier liquidity position, with current assets more than covering current liabilities.
In December 2023, the current ratio declined to 1.04, indicating a slight decrease in liquidity compared to the previous year. By December 2024, the current ratio further dropped to 0.93, potentially signaling a tighter liquidity position for the company.
Overall, the analysis of the current ratio reveals fluctuations in Matador Resources Company's short-term liquidity over the years, with a notable improvement in 2022 followed by some decline in subsequent years. It is essential for the company to closely monitor its current ratio to ensure it maintains a healthy liquidity position to meet its short-term obligations.
Peer comparison
Dec 31, 2024