Matador Resources Company (MTDR)

Return on equity (ROE)

		Dec 31, 2024	Sep 30, 2024	Jun 30, 2024	Mar 31, 2024	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
Net income (ttm)	US$ in thousands	885,322	925,328	940,776	876,673	846,074	845,327	919,160	1,170,212	1,214,206	1,175,204	1,041,260	731,447	584,968	280,724	-198,968	-658,289	-593,205	-479,732	-159,715	230,453
Total stockholders’ equity	US$ in thousands	5,089,150	4,870,630	4,631,630	4,418,250	3,910,860	3,662,720	3,402,860	3,252,850	3,110,800	2,858,810	2,529,170	2,118,600	1,907,210	1,688,010	1,479,760	1,359,400	1,286,530	1,371,930	1,643,830	1,991,350
ROE		17.40%	19.00%	20.31%	19.84%	21.63%	23.08%	27.01%	35.97%	39.03%	41.11%	41.17%	34.53%	30.67%	16.63%	-13.45%	-48.42%	-46.11%	-34.97%	-9.72%	11.57%

December 31, 2024 calculation

ROE = Net income (ttm) ÷ Total stockholders’ equity
= $885,322K ÷ $5,089,150K
= 17.40%

Matador Resources Company's return on equity (ROE) has shown a fluctuating trend over the past few years, based on the provided data.

From March 31, 2020, to December 31, 2021, the company experienced a significant decline in ROE, moving from positive figures to negative figures. This could indicate challenges or inefficiencies in the company's operations during this period.

However, starting from March 31, 2022, there was a notable turnaround in the ROE, with a sharp increase recorded. This improvement continued throughout 2022, reaching a peak of 41.17% on June 30, 2022, indicating a positive shift in the company's profitability and efficiency in utilizing shareholder equity.

Although there was a slight decrease in ROE in the following quarters, the overall trend remained positive, staying above 20% from March 31, 2023, to December 31, 2024. This suggests that Matador Resources Company was able to sustain and maintain improved profitability relative to the equity invested by shareholders during this period.

In conclusion, Matador Resources Company's ROE exhibited a roller-coaster pattern, with significant volatility in the earlier years but showing a more stable and positive performance in recent years. This indicates a potential strengthening of the company's financial position and effectiveness in generating returns for its shareholders.