Matador Resources Company (MTDR)
Profitability ratios
Return on sales
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Gross profit margin | 91.10% | 92.90% | 93.92% | 12.78% | 91.39% |
| Operating profit margin | 43.09% | 57.53% | 47.69% | -60.49% | 23.94% |
| Pretax margin | 36.77% | 52.76% | 39.67% | -74.10% | 12.54% |
| Net profit margin | 30.14% | 39.71% | 35.18% | -68.81% | 8.92% |
Matador Resources Co's profitability ratios show varying trends over the past five years. The gross profit margin has remained consistently strong at 100% throughout the period, indicating effective cost management and pricing strategies.
However, the operating profit margin has fluctuated, with significant improvements in 2022 and 2019 compared to 2020 and 2021. This indicates potential fluctuations in operating expenses and efficiency in generating profits from operations.
The pretax margin has also exhibited volatility, with a sharp decline in 2020 followed by a substantial increase in 2022. The negative pretax margin in 2020 suggests significant non-operating expenses or losses, while the high margins in 2022 and 2019 indicate strong profitability before taxes.
Furthermore, the net profit margin has shown similar fluctuations, with negative margins in 2020 and 2019 and positive margins in other years. This indicates varying levels of profitability after accounting for all expenses, including taxes and interests.
Overall, Matador Resources Co should focus on sustaining its strong gross profit margin and improving its operational efficiency to enhance overall profitability in the future. Additionally, monitoring and managing non-operating expenses to avoid significant margin fluctuations would be crucial for sustained profitability.
Return on investment
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 15.65% | 31.67% | 18.61% | -14.14% | 5.79% |
| Return on assets (ROA) | 10.95% | 21.86% | 13.72% | -16.09% | 2.16% |
| Return on total capital | 18.86% | 47.00% | 30.70% | -27.28% | 6.30% |
| Return on equity (ROE) | 21.63% | 39.03% | 30.67% | -46.11% | 4.79% |
Matador Resources Co's profitability ratios show a mixed performance over the past five years.
1. Operating return on assets (Operating ROA) has fluctuated during this period, ranging from as low as 1.24% in 2020 to as high as 26.10% in 2022. In 2023, it stood at 12.15%, indicating a moderate level of profitability generated from its operations.
2. Return on assets (ROA) has also varied significantly, with the highest being 21.86% in 2022 and the lowest at -16.09% in 2020. The ROA for 2023 was 10.95%, reflecting the company's ability to generate profits relative to its total assets, though at a lower rate compared to previous years.
3. Return on total capital has shown a similar trend, reaching its peak at 41.19% in 2022 and hitting a low of 5.26% in 2020. In 2023, it was reported at 19.77%, implying that the company's profitability in relation to the total capital employed has decreased compared to the previous year.
4. Return on equity (ROE) also exhibits fluctuations, with a high of 39.03% in 2022 and a low of -46.11% in 2020. The ROE for 2023 was 21.63%, indicating that the company generated a return of 21.63% for each dollar of equity, showing a strong performance in utilizing shareholder funds to generate profits.
In conclusion, Matador Resources Co has demonstrated variability in its profitability ratios over the years, with some years showing strong profitability and others experiencing challenges. It is important for stakeholders to closely monitor these ratios to assess the company's financial performance and sustainability.