Matador Resources Company (MTDR)

Liquidity ratios

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
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
Quick ratio 0.68 0.65 0.63 0.65 0.77 0.77 0.70 1.43 1.67 1.31 1.13 0.80 0.62 0.68 0.62 0.52 0.67 0.63 0.48 0.50
Cash ratio 0.02 0.02 0.02 0.03 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

Matador Resources Company's liquidity ratios display fluctuations over the years. The current ratio, which measures the company's ability to cover its short-term liabilities with its current assets, shows a trend of improvement from 2020 to 2022, reaching a peak of 1.86 in December 2022 but then declining thereafter. This indicates that the company had sufficient current assets to meet its short-term obligations during this period.

The quick ratio, a more stringent measure of liquidity that excludes inventory from current assets, also demonstrates an upward trend from 2020 to 2022, peaking at 1.67 in March 2023 before declining in the following periods. This suggests that Matador Resources had a more conservative approach to liquidity management by excluding inventory from its liquid assets.

The cash ratio, which reflects the company's ability to cover its current liabilities with its cash and cash equivalents, exhibits significant variability. The ratio fluctuated widely over the years but generally showed an increasing trend from 2020 to 2022, indicating a strengthening cash position. However, there was a notable decline in the cash ratio from June 2023 to December 2024, which may raise concerns about the company's ability to cover its short-term obligations using only cash.

Overall, Matador Resources Company's liquidity ratios demonstrate both strengths and potential areas for improvement in managing short-term liquidity needs. Analyzing these ratios can provide insights into the company's financial health and its ability to withstand economic challenges.

Additional liquidity measure

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
Cash conversion cycle days -58.42 -48.13 -22.44 -52.41 22.98 -5.41 -15.06 5.50 -19.22 -100.20 -22.80 -3.86 2.20 58.64 74.23 77.83 56.74 44.80 34.24 20.86

The cash conversion cycle of Matador Resources Company has varied significantly over the past years, reflecting changes in its operational efficiency and liquidity management.

From March 31, 2020, to September 30, 2021, the company's cash conversion cycle showed an increasing trend from 20.86 days to 58.64 days, indicating a lengthening in the time it takes for Matador Resources to convert its investments in inventory and other resources into cash inflows.

However, the trend reversed dramatically from December 31, 2021, to March 31, 2022, shifting to negative values. This indicates that Matador Resources was able to convert its investments into cash at a faster rate than before during this period.

Subsequently, there were fluctuations in the cash conversion cycle with both positive and negative values until December 31, 2024. Notably, the cycle was negative for most of this period, implying that Matador Resources managed its working capital efficiently, possibly by streamlining its operations or improving its collections and inventory turnover.

Overall, the cash conversion cycle of Matador Resources Company exhibited volatility over the years, with significant improvements in its cash conversion efficiency seen in certain periods. This suggests that the company has made efforts to enhance its liquidity management and operational performance.