Matador Resources Company (MTDR)

Current 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
Total current assets	US$ in thousands	715,872	711,375	634,403	1,006,490	1,071,830	926,891	800,927	536,263	371,305	396,628	333,628	256,864	261,629	237,224	227,283	356,635	278,492	269,316	273,384	229,954
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
Current ratio		1.04	0.98	0.92	1.67	1.86	1.48	1.31	1.00	0.80	0.84	0.79	0.68	0.90	0.83	0.66	0.99	0.70	0.67	0.81	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 eight quarters. In Q4 2023, the current ratio stood at 1.04, indicating that the company had just enough current assets to cover its current liabilities. This was a slight improvement from the previous quarter's ratio of 0.98, suggesting that Matador Resources Co increased its current assets relative to its current liabilities.

However, compared to Q2 2023 and Q1 2023, where the current ratios were 0.92 and 1.67 respectively, there were notable fluctuations in the company's liquidity position. The current ratio was below 1 in Q2 2023, indicating that Matador Resources Co had more current liabilities than current assets at that time, which could be a cause for concern.

Looking back further, Q4 2022 and Q3 2022 had current ratios of 1.86 and 1.48 respectively, reflecting stronger liquidity positions for the company. Q1 2022 also showed a notable improvement with a current ratio of 1.00.

Overall, the current ratio of Matador Resources Co has been variable, with some quarters showing better liquidity positions than others. It is essential for the company to carefully manage its current assets and liabilities to ensure it can meet its short-term financial obligations effectively.