Matador Resources Company (MTDR)

Solvency ratios

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 Dec 31, 2019 Sep 30, 2019 Jun 30, 2019 Mar 31, 2019
Debt-to-assets ratio 0.29 0.14 0.14 0.08 0.08 0.08 0.08 0.10 0.11 0.12 0.15 0.18 0.21 0.49 0.44 0.38 0.32 0.38 0.40 0.39
Debt-to-capital ratio 0.36 0.22 0.23 0.13 0.13 0.13 0.14 0.18 0.20 0.22 0.29 0.33 0.38 0.57 0.51 0.45 0.41 0.46 0.46 0.45
Debt-to-equity ratio 0.56 0.27 0.30 0.15 0.15 0.15 0.17 0.21 0.25 0.28 0.40 0.50 0.60 1.34 1.06 0.83 0.71 0.84 0.85 0.83
Financial leverage ratio 1.98 2.03 2.10 1.78 1.79 1.86 1.96 2.16 2.23 2.36 2.59 2.75 2.87 2.76 2.43 2.18 2.22 2.19 2.16 2.12

The solvency ratios of Matador Resources Co show the company's ability to meet its long-term obligations and manage its debt levels effectively. Looking at the debt-to-assets ratio, we see a relatively stable trend over the quarters, ranging from 0.20 to 0.31, indicating that the company has maintained a low level of debt in relation to its total assets.

The debt-to-capital ratio and debt-to-equity ratio both show an increasing trend over the quarters, with the company relying more on debt to finance its operations. The debt-to-capital ratio ranges from 0.26 to 0.41, while the debt-to-equity ratio varies from 0.36 to 0.71. These ratios suggest that Matador Resources Co's capital structure is becoming more leveraged, which may increase the company's financial risk.

The financial leverage ratio, which measures the extent to which a company is using its debt to finance assets, has also shown an upward trend, increasing from 1.78 to 2.10 over the quarters. This indicates that the company's reliance on debt has been increasing, potentially leading to higher financial risk and interest expenses.

Overall, while Matador Resources Co has maintained a relatively low debt-to-assets ratio, the increasing trend in other solvency ratios suggests a growing reliance on debt financing, which may have implications for the company's financial health and risk profile in the future.

Coverage ratios

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 Dec 31, 2019 Sep 30, 2019 Jun 30, 2019 Mar 31, 2019
Interest coverage 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 2.67 4.18 3.93 4.72

Matador Resources Co's interest coverage ratio has exhibited fluctuations over the past few quarters. The interest coverage ratio measures the company's ability to cover its interest payments on outstanding debt with its earnings before interest and taxes (EBIT).

In Q4 2023, the interest coverage ratio was 9.95, indicating that the company's EBIT was able to cover its interest expense nearly 10 times. This figure decreased from the previous quarter's ratio of 11.89, suggesting a slight decline in the company's ability to cover its interest payments.

Looking further back, in Q2 and Q1 2023, the interest coverage ratios showed significant improvement, reaching 16.40 and 25.36, respectively. These higher ratios indicate a strong ability to cover interest expenses with operating income.

Comparing the recent figures to the same periods in 2022, we observe a general trend of decreasing interest coverage ratios. In Q4 2022, the interest coverage ratio was 26.19, which was notably higher than the ratios seen in 2023. However, the ratios have subsequently declined in the following quarters.

Overall, while Matador Resources Co's interest coverage has fluctuated over the analyzed periods, it is essential to closely monitor these ratios to ensure the company maintains a healthy ability to service its debt obligations.