Matador Resources Company (MTDR)

Quick ratio

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Cash	US$ in thousands	23,033	52,662	505,179	48,135	57,916
Short-term investments	US$ in thousands	—	—	—	—	—
Receivables	US$ in thousands	654,729	472,954	453,818	241,416	137,133
Total current liabilities	US$ in thousands	995,357	685,275	575,873	464,837	290,936
Quick ratio		0.68	0.77	1.67	0.62	0.67

December 31, 2024 calculation

Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($23,033K + $—K + $654,729K) ÷ $995,357K
= 0.68

The quick ratio of Matador Resources Company has exhibited some fluctuation over the past five years. As of December 31, 2020, the quick ratio stood at 0.67, indicating that the company had $0.67 in liquid assets to cover each dollar of current liabilities. By December 31, 2021, the quick ratio decreased slightly to 0.62, suggesting a potential liquidity challenge.

However, there was a significant improvement in the company's liquidity position by December 31, 2022, as the quick ratio surged to 1.67. This sharp increase indicates that Matador Resources had substantially improved its ability to meet its short-term obligations with its liquid assets.

Subsequently, by the end of December 31, 2023, the quick ratio declined to 0.77, falling from the peak in the previous year but still indicating a reasonable ability to cover current liabilities with liquid assets.

As of December 31, 2024, the quick ratio remained relatively stable at 0.68, which suggests that Matador Resources Company may need to continue monitoring its liquidity position to ensure it can meet its short-term financial obligations efficiently. Overall, the trend in the quick ratio indicates varying levels of liquidity over the five-year period, with a notable improvement in 2022 but some volatility in the subsequent years.