Matador Resources Company (MTDR)

Quick ratio

		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	US$ in thousands	23,033	23,277	15,242	23,208	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
Short-term investments	US$ in thousands	—	-2,336	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—
Receivables	US$ in thousands	654,729	606,137	528,040	528,473	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
Total current liabilities	US$ in thousands	995,357	965,955	856,541	851,341	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
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

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 shown variability over the past few years. It was below 1.0 for most of the quarters up to March 31, 2022, indicating potential liquidity concerns as the company may have had difficulty meeting its short-term obligations using its most liquid assets. However, from June 30, 2022, the quick ratio improved significantly, reaching above 1.0 and continuing to increase throughout 2023. This improvement suggests that the company had more than enough liquid assets to cover its current liabilities during this period, indicating a strengthened short-term financial position.

In the latter part of 2023 and into 2024, the quick ratio declined slightly but remained around 0.6 to 0.7, indicating that Matador Resources still had a reasonable level of quick assets relative to its current liabilities. Overall, the trend in the quick ratio reflects a mix of periods of lower liquidity and improved liquidity for Matador Resources Company over the analyzed period, with a recent stabilization at levels around 0.6 to 0.7.