Matador Resources Company (MTDR)

Operating return on assets (Operating ROA)

		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
Operating income (ttm)	US$ in thousands	1,209,322	1,215,411	1,358,675	1,701,396	1,759,270	1,712,691	1,459,603	1,009,720	793,076	409,375	-41,952	-622,368	-521,499	-397,870	-90,627	421,472	235,481	318,495	300,246	297,450
Total assets	US$ in thousands	7,727,000	7,439,160	7,132,340	5,782,100	5,554,500	5,305,150	4,963,880	4,567,330	4,262,150	3,985,490	3,834,550	3,738,880	3,687,280	3,786,230	4,001,130	4,333,670	4,069,680	3,936,640	3,751,450	3,583,300
Operating ROA		15.65%	16.34%	19.05%	29.43%	31.67%	32.28%	29.40%	22.11%	18.61%	10.27%	-1.09%	-16.65%	-14.14%	-10.51%	-2.27%	9.73%	5.79%	8.09%	8.00%	8.30%

December 31, 2023 calculation

Operating ROA = Operating income (ttm) ÷ Total assets
= $1,209,322K ÷ $7,727,000K
= 15.65%

Matador Resources Co's operating return on assets (ROA) has exhibited some fluctuation over the past eight quarters. The company's operating ROA decreased from 26.10% in Q4 2022 to 12.15% in Q4 2023, representing a significant decline over this one-year period. This downward trend suggests a decrease in the company's ability to generate operating profits from its assets.

However, it is worth noting that Matador Resources Co's operating ROA experienced a sharp increase in Q1 2023, reaching 24.07%. This peak indicates a temporary improvement in the company's operational efficiency and profitability during that period.

Overall, the varying levels of operating ROA indicate fluctuations in Matador Resources Co's ability to generate operating income relative to its total assets. Further analysis of the company's operational performance and asset utilization may be warranted to understand the factors driving these changes in operating ROA.