Matador Resources Company (MTDR)

Return on assets (ROA)

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Net income	US$ in thousands	846,074	1,214,210	584,968	-593,205	87,777
Total assets	US$ in thousands	7,727,000	5,554,500	4,262,150	3,687,280	4,069,680
ROA		10.95%	21.86%	13.72%	-16.09%	2.16%

December 31, 2023 calculation

ROA = Net income ÷ Total assets
= $846,074K ÷ $7,727,000K
= 10.95%

Matador Resources Co's return on assets (ROA) has exhibited fluctuations over the past five years. In 2023, the company's ROA stood at 10.95%, representing a decrease from the previous year's level of 21.86%. Despite this decline, the ROA in 2023 remains positive, indicating that Matador Resources is still generating a profit from its assets, albeit at a lower rate compared to the prior year.

The significant drop in ROA from 2022 to 2023 suggests potential challenges or changes in the company's financial performance or asset utilization efficiency. It will be important to investigate further to determine the factors influencing this decline and assess the company's strategies to improve its ROA going forward.

In comparison to the ROA for 2021 and 2019, Matador Resources Co has shown improvement in 2023. The negative ROA in 2020 (-16.09%) indicates that the company faced difficulties in generating profits from its assets during that period, possibly due to adverse economic conditions or operational inefficiencies.

Overall, while Matador Resources Co's ROA has experienced variability over the past five years, a positive trend is observed in 2023 compared to 2020. Further analysis and monitoring of the company's asset utilization and profitability are recommended to ensure sustainable financial performance.