Matador Resources Company (MTDR)
Interest coverage
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 1,372,660 | 1,360,296 | 1,304,251 | 1,217,711 | 1,153,620 | 1,157,059 | 1,310,832 | 1,624,801 | 1,680,727 | 1,636,703 | 1,384,110 | 943,134 | 734,365 | 355,913 | -90,339 | -664,475 | -562,112 | -436,863 | -129,909 | 382,711 |
| Interest expense (ttm) | US$ in thousands | 17,500 | 147,424 | 146,663 | 144,906 | 121,520 | 102,237 | 82,825 | 67,088 | 67,164 | 69,848 | 71,841 | 71,289 | 74,687 | 75,931 | 76,173 | 76,530 | 76,692 | 76,041 | 75,985 | 75,756 |
| Interest coverage | 78.44 | 9.23 | 8.89 | 8.40 | 9.49 | 11.32 | 15.83 | 24.22 | 25.02 | 23.43 | 19.27 | 13.23 | 9.83 | 4.69 | -1.19 | -8.68 | -7.33 | -5.75 | -1.71 | 5.05 |
December 31, 2024 calculation
Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $1,372,660K ÷ $17,500K
= 78.44
The interest coverage ratio for Matador Resources Company, based on the provided data, has fluctuated significantly over the time period from March 31, 2020, to December 31, 2024.
The interest coverage ratio indicates the company's ability to meet its interest obligations from its operating income. A ratio above 1 indicates that the company is generating enough operating income to cover its interest expenses.
Matador Resources Company struggled with its interest coverage ratio in the initial period, with negative ratios in June 2020, September 2020, December 2020, and subsequent quarters. This suggests that the company may have faced challenges in generating sufficient operating income to cover its interest expenses during that time.
However, starting from March 2021, the interest coverage ratio improved significantly, turning positive and showing a consistent increasing trend until December 31, 2024. The ratio reached a peak of 78.44 on December 31, 2024, indicating a substantial improvement in the company's ability to cover its interest payments with its operating income.
Overall, the improving trend in the interest coverage ratio suggests that Matador Resources Company has enhanced its financial stability and ability to meet its interest obligations over the analyzed period.
Peer comparison
Dec 31, 2024