Matador Resources Company (MTDR)
Return on assets (ROA)
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 885,322 | 846,074 | 1,214,210 | 584,968 | -593,205 |
| Total assets | US$ in thousands | 10,850,100 | 7,727,000 | 5,554,500 | 4,262,150 | 3,687,280 |
| ROA | 8.16% | 10.95% | 21.86% | 13.72% | -16.09% |
December 31, 2024 calculation
ROA = Net income ÷ Total assets
= $885,322K ÷ $10,850,100K
= 8.16%
The return on assets (ROA) of Matador Resources Company has exhibited significant fluctuations over the past five years. Starting at a negative figure of -16.09% on December 31, 2020, the company managed to improve its performance substantially, achieving ROA of 13.72% by December 31, 2021, and further increasing it to 21.86% by December 31, 2022. However, in the following years, there was a slight decrease in ROA, with figures of 10.95% on December 31, 2023, and 8.16% on December 31, 2024.
The notable improvement in ROA from negative to positive values in the initial years reflects the company's efforts to enhance its asset utilization efficiency, generating more profit from its assets. However, the subsequent decline in ROA suggests a potential slowdown in this efficiency, indicating that the company may need to focus on optimizing its asset management strategies to sustain its profitability levels.
Overall, the fluctuating trend in ROA for Matador Resources Company highlights the importance of continuous monitoring and adjustment of asset utilization practices to maximize returns and maintain financial performance.
Peer comparison
Dec 31, 2024