Matador Resources Company (MTDR)

Solvency ratios

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
Debt-to-assets ratio 0.31 0.14 0.07 0.10 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
Debt-to-capital ratio 0.40 0.23 0.12 0.15 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
Debt-to-equity ratio 0.65 0.30 0.13 0.18 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
Financial leverage ratio 2.13 2.18 1.84 1.86 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

The solvency ratios of Matador Resources Company provide insights into the company's ability to meet its long-term debt obligations.

1. Debt-to-assets ratio:
The debt-to-assets ratio of Matador Resources has shown a decreasing trend over the period from March 31, 2020, to December 31, 2024, indicating that the company is becoming less reliant on debt to finance its assets. A lower debt-to-assets ratio suggests lower financial risk and greater financial stability.

2. Debt-to-capital ratio:
Similarly, the debt-to-capital ratio of Matador Resources has also decreased over the same period, indicating a more conservative capital structure. This trend suggests that the company has been successful in reducing its debt relative to its total capital, which can be viewed positively by investors and creditors alike.

3. Debt-to-equity ratio:
The debt-to-equity ratio of Matador Resources has exhibited a declining trend, implying that the company has been using less debt financing and relying more on equity to fund its operations. A lower debt-to-equity ratio indicates lower financial risk and a stronger financial position.

4. Financial leverage ratio:
The financial leverage ratio of Matador Resources has been relatively stable over the period, hovering around the range of 1.8 to 2.7. This indicates that the company has been maintaining an appropriate level of debt relative to its equity, which is important for optimal capital structure management.

Overall, the decreasing trends in the debt-to-assets, debt-to-capital, and debt-to-equity ratios reflect positively on Matador Resources' financial health and solvency position. Additionally, the stable financial leverage ratio suggests that the company has been managing its debt levels effectively to support sustainable growth and financial stability in the long term.

Coverage ratios

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
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

The interest coverage ratio for Matador Resources Company has fluctuated over the period from March 31, 2020, to December 31, 2024. Starting at 5.05 in March 2020, the ratio deteriorated to negative values in the subsequent quarters, indicating that the company's operating income was insufficient to cover its interest expenses during those periods.

However, there was a significant turnaround in the company's interest coverage ratio from September 2021 onwards, as it improved consistently to reach a high of 78.44 by December 31, 2024. This trend suggests that Matador Resources Company has significantly strengthened its ability to cover its interest expenses with its operating income.

Overall, the company's interest coverage ratio displayed volatility in the earlier periods but showed a positive and improving trend in the latter part of the analyzed period, indicating better financial health and a reduced risk of default on interest payments.