Matador Resources Company (MTDR)
Debt-to-capital ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| 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 |
| Debt-to-capital ratio | 0.36 | 0.13 | 0.20 | 0.38 | 0.41 |
December 31, 2023 calculation
Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $2,206,630K ÷ ($2,206,630K + $3,910,860K)
= 0.36
The debt-to-capital ratio of Matador Resources Co has fluctuated over the past five years, indicating varying levels of financial leverage and capital structure. In 2023, the debt-to-capital ratio was 0.36, representing 36% of the company's capital structure funded by debt. This ratio has increased from 0.27 in 2022 but remains lower than the ratios seen in 2020 and 2019.
The upward trend in 2023 suggests that Matador Resources Co may have taken on more debt relative to its capital base compared to the previous year. This increase could be due to strategic decisions to finance growth opportunities, acquisitions, or operational needs through debt financing. However, it is essential to monitor the trend over time to assess the company's ability to manage its debt levels effectively and sustain its financial health.
Peer comparison
Dec 31, 2023