Matador Resources Company (MTDR)
Interest coverage
| 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 |
| Interest expense | US$ in thousands | 17,500 | 121,520 | 67,164 | 74,687 | 76,692 |
| Interest coverage | 81.98 | 9.49 | 25.02 | 9.83 | -7.33 |
December 31, 2024 calculation
Interest coverage = EBIT ÷ Interest expense
= $1,434,700K ÷ $17,500K
= 81.98
Matador Resources Company's interest coverage ratio has exhibited significant fluctuations over the analyzed period. Starting from a concerning negative value of -7.33 on December 31, 2020, the company improved its interest coverage substantially to a healthy level of 9.83 by December 31, 2021. In the following years, Matador's interest coverage ratio continued to strengthen, reaching 25.02 on December 31, 2022, and peaking at an impressive 81.98 on December 31, 2024. However, there was a slight dip to 9.49 on December 31, 2023.
Overall, Matador Resources Company's interest coverage has exhibited improvement over the years, with the company showing a strong ability to meet its interest obligations in recent years. It is important for investors and stakeholders to monitor this ratio as it provides insights into the company's ability to service its debt and manage financial risk.
Peer comparison
Dec 31, 2024