Matador Resources Company (MTDR)

Current 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
Total current assets	US$ in thousands	927,345	847,186	738,440	754,135	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
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
Current ratio		0.93	0.88	0.86	0.89	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

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 displayed fluctuations over the reported periods. The ratio is calculated by dividing current assets by current liabilities, providing insight into the company's ability to meet its short-term financial obligations.

From March 31, 2020, to June 30, 2021, the current ratio fluctuated between 0.66 and 0.99, indicating a level below 1, suggesting potential difficulty in meeting short-term obligations. However, from March 31, 2022, the current ratio improved significantly, reaching a peak of 1.86 on December 31, 2022, and maintaining levels above 1 thereafter.

The current ratio exceeding 1 implies the company has more current assets than current liabilities, indicating a stronger ability to cover short-term obligations. The trend in the ratios suggests an improvement in the company's liquidity position over the later periods compared to the earlier ones, which is a positive indicator of financial health and stability. This progression may signify effective management of working capital and financial resources by Matador Resources Company.