Matador Resources Company (MTDR)

Return on total capital

Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Earnings before interest and tax (EBIT) US$ in thousands 1,434,700 1,153,620 1,680,730 734,365 -562,112
Long-term debt US$ in thousands 3,325,410 2,206,630 465,000 485,000 774,000
Total stockholders’ equity US$ in thousands 5,089,150 3,910,860 3,110,800 1,907,210 1,286,530
Return on total capital 17.05% 18.86% 47.00% 30.70% -27.28%

December 31, 2024 calculation

Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $1,434,700K ÷ ($3,325,410K + $5,089,150K)
= 17.05%

Matador Resources Company's return on total capital has shown significant fluctuations over the years. The trend reveals a sharp decline from -27.28% on December 31, 2020, to a notable improvement of 30.70% by December 31, 2021. Subsequently, there was a substantial increase to 47.00% by December 31, 2022, indicating a strong performance. However, by December 31, 2023, there was a slight decrease to 18.86%, followed by a further decline to 17.05% by December 31, 2024.

Overall, the company experienced a mixture of positive and negative returns on total capital during the period analyzed. It is essential for investors and stakeholders to monitor these fluctuations closely to assess the company's efficiency in generating returns relative to its total capital employed.