Matador Resources Company (MTDR)

Quick ratio

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Cash	US$ in thousands	52,662	505,179	48,135	57,916	40,024
Short-term investments	US$ in thousands	—	—	—	—	—
Receivables	US$ in thousands	472,954	453,818	241,416	137,133	189,413
Total current liabilities	US$ in thousands	685,275	575,873	464,837	290,936	399,772
Quick ratio		0.77	1.67	0.62	0.67	0.57

December 31, 2023 calculation

Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($52,662K + $—K + $472,954K) ÷ $685,275K
= 0.77

The quick ratio of Matador Resources Co has varied over the last five years, ranging from a low of 0.61 in 2019 to a high of 1.76 in 2022. A quick ratio below 1 indicates that the company may have difficulty meeting its short-term liabilities with its most liquid assets. In this case, the quick ratio has been consistently below 1 in all years except for 2022, where it peaked at 1.76, indicating a significant improvement in the company's ability to cover its short-term obligations using its most liquid assets.

The ratio dropped to 0.69 in 2021 but recovered slightly to 0.75 in 2020, suggesting some fluctuations in the company's liquidity position during those years. The most recent data for 2023 shows a quick ratio of 0.91, which is higher than in the two preceding years but still below the ideal ratio of 1.

Overall, the trend in Matador Resources Co's quick ratio indicates some variability in the company's ability to cover its short-term liabilities with its quick assets over the past five years. Investors and analysts may want to further investigate the reasons behind these fluctuations to assess the company's financial health and liquidity risk.