Matador Resources Company (MTDR)
Liquidity ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 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 |
| Quick ratio | 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 | 0.57 | 0.50 | 0.62 | 0.52 |
| Cash ratio | 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 | 0.10 | 0.04 | 0.18 | 0.06 |
Matador Resources Co's liquidity ratios over the past eight quarters exhibit fluctuations, indicating changes in the company's ability to meet its short-term financial obligations. The current ratio, which measures the company's ability to cover its short-term liabilities with its current assets, shows a downward trend until Q1 2023, where there was a significant increase to 1.67. This could indicate an improvement in the company's short-term liquidity position in the most recent quarter.
The quick ratio, a more stringent measure of liquidity as it excludes inventory from current assets, also experienced a decline over the quarters before Q1 2023, where it saw a notable increase to 1.55. This suggests that in the most recent quarter, Matador had a stronger ability to meet its short-term obligations with its most liquid assets.
Similarly, the cash ratio, which indicates the company's ability to cover its current liabilities with its cash and cash equivalents, shows a fluctuating pattern with a significant improvement in Q1 2023 to 0.86 after dropping in the preceding quarters. This indicates that Matador had a higher proportion of cash on hand to cover its short-term liabilities in the most recent quarter.
Overall, the improvements in the current ratio, quick ratio, and cash ratio in Q1 2023 suggest a strengthened liquidity position for Matador Resources Co. However, it is essential to continue monitoring these ratios in subsequent quarters to assess the company's ongoing liquidity management and financial health.
Additional liquidity measure
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash conversion cycle | days | 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 | 7.68 | -56.00 | 61.14 | -40.99 |
The cash conversion cycle is a metric that indicates how long it takes for a company to convert its investment in inventory and other resources into cash flow from sales. For Matador Resources Co, the cash conversion cycle has fluctuated over the past eight quarters, ranging from 51.96 days to 76.14 days.
In Q3 2023, the cash conversion cycle was 76.14 days, indicating that on average, it took the company approximately 76 days to convert its investments in inventory and other resources into cash flow from sales. This was a significant increase from the previous quarter, where the cycle was 67.81 days.
In comparison, in Q1 2023, the company's cash conversion cycle was 51.96 days, the lowest among the data provided, suggesting that Matador Resources Co was able to more swiftly convert its investments into cash flow during that period.
Overall, the fluctuation in Matador Resources Co's cash conversion cycle over the past eight quarters may indicate variations in the company's efficiency in managing its working capital. It is essential for the company to closely monitor and analyze its cash conversion cycle to identify potential areas for improvement and ensure optimal cash flow management.