Matador Resources Company (MTDR)
Return on equity (ROE)
| 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 stockholders’ equity | US$ in thousands | 5,089,150 | 3,910,860 | 3,110,800 | 1,907,210 | 1,286,530 |
| ROE | 17.40% | 21.63% | 39.03% | 30.67% | -46.11% |
December 31, 2024 calculation
ROE = Net income ÷ Total stockholders’ equity
= $885,322K ÷ $5,089,150K
= 17.40%
Matador Resources Company's return on equity (ROE) has displayed significant fluctuation over the past five years.
In 2020, the company's ROE stood at a notably low -46.11%, indicating that the company was experiencing a period of substantial negative returns relative to its shareholders' equity. However, in the subsequent year, Matador's ROE drastically improved to 30.67%, representing a strong rebound and a return to profitability.
Continuing this positive trend, the ROE further increased to 39.03% by the end of 2022, signaling continued efficiency in generating income from shareholder equity. However, there was a slight decline in 2023, as the ROE dropped to 21.63%, possibly indicating some challenges or changes in the company's operations impacting its profitability.
By the end of 2024, Matador Resources Company's ROE stood at 17.40%, indicating a further decrease from the previous year. While still positive, this decline suggests potential challenges in maintaining or increasing profitability relative to shareholder equity.
Overall, Matador Resources Company's ROE trend reflects a mix of successes and challenges over the analyzed period, highlighting the importance of monitoring and addressing factors influencing the company's profitability and efficiency in utilizing shareholder equity.
Peer comparison
Dec 31, 2024