Matador Resources Company (MTDR)

Financial leverage ratio

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Total assets	US$ in thousands	7,727,000	5,554,500	4,262,150	3,687,280	4,069,680
Total stockholders’ equity	US$ in thousands	3,910,860	3,110,800	1,907,210	1,286,530	1,833,650
Financial leverage ratio		1.98	1.79	2.23	2.87	2.22

December 31, 2023 calculation

Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $7,727,000K ÷ $3,910,860K
= 1.98

Over the past five years, Matador Resources Co's financial leverage ratio has shown fluctuations. The ratio was at its lowest in 2022 at 1.79, indicating lower dependence on debt to finance its operations. However, in 2023, the financial leverage ratio increased to 1.98, suggesting a slight increase in leverage compared to the previous year.

In 2021, the ratio spiked to 2.23, which could indicate a higher level of debt utilization to support the company's activities. This was followed by a significant increase in 2020, with the ratio reaching 2.87, indicating a substantial reliance on debt for funding.

The trend reversed in 2019, where the financial leverage ratio decreased to 2.22, showing a reduced dependence on debt compared to the previous year.

Overall, the fluctuations in Matador Resources Co's financial leverage ratio over the past five years indicate varying levels of financial risk and debt utilization within the company's capital structure. It is important for stakeholders to monitor these changes to assess the company's ability to repay its debts and manage financial obligations effectively.