Matador Resources Company (MTDR)

Quick ratio

		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	US$ in thousands	52,662	25,935	22,303	448,723	505,179	400,484	230,394	63,001	48,135	73,128	44,632	17,924	57,916	41,813	20,573	27,063	40,024	15,709	59,950	20,758
Short-term investments	US$ in thousands	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—
Receivables	US$ in thousands	472,954	526,914	460,751	412,912	453,818	418,056	458,369	367,644	241,416	248,354	216,033	176,814	137,133	138,079	143,514	153,789	189,413	185,194	147,179	150,675
Total current liabilities	US$ in thousands	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	399,772	403,357	336,775	328,423
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

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 exhibited variability over the past eight quarters. The quick ratio measures the company's ability to cover its short-term liabilities with its most liquid assets, excluding inventory. A quick ratio below 1 indicates potential difficulty in meeting short-term obligations solely with liquid assets.

In Q4 2023, the quick ratio was 0.91, showing a slight decrease from the previous quarter's ratio of 0.89. This could suggest a decrease in the company's ability to cover its current liabilities with its most liquid assets, which may raise concerns about short-term liquidity.

Compared to the rapid decreases in Q2 and Q1 2023, the quick ratio improved significantly in Q4 2022 and Q1 2023, standing at 1.76 and 1.55 respectively. These levels indicate a more favorable position in meeting short-term obligations with liquid assets.

Overall, while the quick ratio has fluctuated over the past eight quarters, it is important for Matador Resources Co to maintain a quick ratio above 1 to ensure sufficient liquidity to cover its short-term liabilities. Additional analysis incorporating other financial metrics and industry benchmarks would provide a more comprehensive assessment of the company's liquidity position.