Matador Resources Company (MTDR)

Return on equity (ROE)

		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 stockholders’ equity	US$ in thousands	3,910,860	3,110,800	1,907,210	1,286,530	1,833,650
ROE		21.63%	39.03%	30.67%	-46.11%	4.79%

December 31, 2023 calculation

ROE = Net income ÷ Total stockholders’ equity
= $846,074K ÷ $3,910,860K
= 21.63%

Matador Resources Co's return on equity (ROE) has exhibited fluctuating trends over the past five years. In 2023, the ROE stood at 21.63%, indicating a decrease from the previous year's figure of 39.03%. Despite the decline, the ROE remains at a relatively healthy level, suggesting that the company is effectively generating returns for its shareholders.

The significant drop in ROE in 2020, where it recorded a negative figure of -46.11%, is concerning and may be attributed to operational or financial challenges during that period. However, the recovery in subsequent years, especially the substantial improvement in 2022 and 2021 with ROE values of 39.03% and 30.67%, respectively, indicates a positive turnaround in the company's profitability and efficiency in utilizing shareholders' equity.

The ROE of 4.79% in 2019 reflects a modest return on equity, which may indicate lower profitability or less efficient utilization of investors' funds. Overall, Matador Resources Co's ROE has shown variability, highlighting the importance of consistent monitoring and strategic management of the company's financial performance to sustain and enhance shareholder value in the long term.