Matador Resources Company (MTDR)
Profitability ratios
Return on sales
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Gross profit margin | 91.06% | 91.10% | 92.90% | 93.92% | 12.78% |
| Operating profit margin | 40.93% | 43.09% | 57.53% | 47.69% | -60.49% |
| Pretax margin | 33.60% | 36.77% | 52.76% | 39.67% | -74.10% |
| Net profit margin | 25.26% | 30.14% | 39.71% | 35.18% | -68.81% |
Matador Resources Company has shown a significant improvement in its profitability ratios over the years, as evidenced by its gross profit margin increasing from 12.78% in 2020 to 91.06% in 2024. This indicates the company's ability to efficiently generate profit from its core business activities.
Similarly, the operating profit margin has improved from a negative percentage in 2020 to 40.93% in 2024, reflecting better cost management and operational efficiency. The pretax margin and net profit margin have also shown positive trends, with the company moving from negative percentages to positive margins from 2020 to 2024.
Overall, Matador Resources has demonstrated a strong performance in terms of profitability, with consistent growth in its profit margins over the years. This suggests effective management of costs and operations, leading to improved financial performance and increased shareholder value.
Return on investment
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 13.22% | 15.65% | 31.67% | 18.61% | -14.14% |
| Return on assets (ROA) | 8.16% | 10.95% | 21.86% | 13.72% | -16.09% |
| Return on total capital | 17.05% | 18.86% | 47.00% | 30.70% | -27.28% |
| Return on equity (ROE) | 17.40% | 21.63% | 39.03% | 30.67% | -46.11% |
Matador Resources Company's profitability ratios indicate varying levels of performance over the past five years.
1. Operating return on assets (Operating ROA) improved significantly from -14.14% in 2020 to 31.67% in 2022, indicating that the company generated increased operating income relative to its assets during this period. However, there was a slight decline in 2023 and 2024, with figures of 15.65% and 13.22%, respectively.
2. Return on assets (ROA) also saw improvement, with a rise from -16.09% in 2020 to 21.86% in 2022. Despite this positive trend, the ratio decreased to 10.95% in 2023 and further to 8.16% in 2024, indicating a decline in the company's ability to generate profits from its assets over the latter years.
3. Return on total capital showed a significant improvement from -27.28% in 2020 to 47.00% in 2022, reflecting an increase in the profitability of the company's total invested capital. However, the ratio decreased to 18.86% in 2023 and 17.05% in 2024, which suggests a reduction in returns relative to the total capital employed.
4. Return on equity (ROE) demonstrated a notable increase from -46.11% in 2020 to 39.03% in 2022, indicating a significant enhancement in shareholder value. Despite this, the ratio decreased to 21.63% in 2023 and 17.40% in 2024, implying that the company's ability to generate returns for equity holders moderated in the latter years.
Overall, while Matador Resources Company showed improvements in profitability ratios up to 2022, there were declines in performance indicators in 2023 and 2024, signaling a potential need for management to focus on sustaining and enhancing profitability levels in the future.