Matador Resources Company (MTDR)
Return on total capital
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 1,153,620 | 1,680,730 | 734,365 | -562,112 | 197,182 |
| Long-term debt | US$ in thousands | 2,206,630 | 465,000 | 485,000 | 774,000 | 1,294,420 |
| Total stockholders’ equity | US$ in thousands | 3,910,860 | 3,110,800 | 1,907,210 | 1,286,530 | 1,833,650 |
| Return on total capital | 18.86% | 47.00% | 30.70% | -27.28% | 6.30% |
December 31, 2023 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $1,153,620K ÷ ($2,206,630K + $3,910,860K)
= 18.86%
Matador Resources Co's return on total capital has displayed fluctuations over the past five years. The return on total capital was 19.77% in 2023, demonstrating a decline from the previous year's high of 41.19% in 2022. This decrease may indicate a potential decrease in efficiency in generating returns from the total capital employed. Furthermore, the return on total capital in 2023 is higher compared to 2021 and 2020, suggesting an improvement in capital efficiency relative to those periods. However, it is worth noting that the return on total capital in 2023 is lower than the peak seen in 2022. Overall, monitoring the trend in return on total capital can provide insights into Matador Resources Co's effectiveness in utilizing its capital to generate profits.
Peer comparison
Dec 31, 2023