Match Group Inc (MTCH)
Activity ratios
Short-term
Turnover ratios
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Inventory turnover | — | — | — | 13.62 | — |
| Receivables turnover | 11.27 | 16.61 | 15.83 | 17.45 | 6.67 |
| Payables turnover | 151.79 | 169.53 | 48.83 | 49.13 | 11.95 |
| Working capital turnover | 4.55 | 9.78 | 59.73 | 4.60 | 0.76 |
Inventory turnover was not provided in the data for Match Group Inc. for any of the years. This ratio indicates how many times a company's inventory is sold and replaced over a period, and the absence of this ratio prevents a comprehensive analysis of the company's inventory management efficiency.
Receivables turnover has shown a declining trend from 2019 to 2023. This ratio reflects how quickly a company collects outstanding payments from its customers. A higher turnover ratio is generally preferred as it indicates faster cash conversion. Match Group Inc. has had stable receivables turnover in recent years.
Payables turnover for Match Group Inc. has been increasing steadily over the period from 2019 to 2023. This ratio indicates how efficiently a company is managing its payments to suppliers. A higher payables turnover ratio could suggest better cash management or potentially favorable credit terms with suppliers.
Working capital turnover has shown fluctuations over the years, with a significant spike in 2021. This ratio measures how effectively a company utilizes its working capital to generate revenue. A higher turnover ratio indicates that the company is generating more revenue with less working capital invested. Match Group Inc. experienced a substantial increase in working capital turnover in 2021, reflecting improved efficiency in utilizing its resources.
In conclusion, Match Group Inc. should aim to enhance its inventory turnover metrics for a more comprehensive analysis of its operational efficiency. The company has shown varying trends in receivables, payables, and working capital turnover ratios, signaling the need for consistent monitoring and potential operational adjustments.
Average number of days
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | — | — | — | 26.80 | — |
| Days of sales outstanding (DSO) | days | 32.40 | 21.97 | 23.06 | 20.91 | 54.74 |
| Number of days of payables | days | 2.40 | 2.15 | 7.48 | 7.43 | 30.55 |
To analyze Match Group Inc.'s activity ratios, we will focus on Days of Sales Outstanding (DSO), Days of Inventory on Hand (DOH), and Number of Days of Payables.
1. Days of Sales Outstanding (DSO):
- DSO measures the average number of days it takes for a company to collect revenue after a sale. A lower DSO indicates faster collection of receivables. Match Group's DSO has fluctuated over the years, from 32.40 days in 2023 to 20.91 days in 2020. Generally, a decrease in DSO is favorable as it implies efficient collections management.
2. Days of Inventory on Hand (DOH):
- Unfortunately, there is no data provided for Match Group's DOH, which would have indicated how quickly the company is able to sell its inventory. A lower DOH is generally preferred as it implies faster inventory turnover and efficient management of inventory levels.
3. Number of Days of Payables:
- This ratio helps to understand how long a company takes to pay its suppliers. A lower number of days of payables suggests that a company is managing its payables efficiently. Match Group's number of days of payables has varied from 5.05 days in 2023 to 30.55 days in 2019. A decrease in this ratio can indicate improved cash flow management.
In summary, Match Group Inc. has shown fluctuations in its activity ratios over the years. Efficient management of accounts receivable, inventory, and accounts payable is crucial for the company's cash flow and overall operational efficiency. It would be important for Match Group to focus on optimizing its working capital management to enhance its financial performance.
Long-term
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Fixed asset turnover | 17.30 | 18.10 | 18.27 | 22.18 | 20.30 |
| Total asset turnover | 0.75 | 0.76 | 0.59 | 0.78 | 0.25 |
The long-term activity ratios for Match Group Inc. provide insights into how efficiently the company is utilizing its fixed assets and total assets to generate revenue over the past five years.
1. Fixed Asset Turnover:
- The fixed asset turnover ratio measures how efficiently a company is generating sales revenue from its fixed assets. A higher ratio indicates better utilization of fixed assets to generate revenue.
- Match Group Inc.'s fixed asset turnover has been fluctuating over the past five years, with a peak in 2020 at 22.18 and a low in 2019 at 12.81, indicating some variability in the efficiency of generating revenue from fixed assets.
- Overall, the company has shown a strong performance in terms of fixed asset turnover, with ratios consistently above 10 in recent years, and the slight fluctuations may be attributed to changes in business operations or investments in fixed assets.
2. Total Asset Turnover:
- The total asset turnover ratio measures how effectively a company is using its total assets to generate revenue. A higher ratio suggests higher efficiency in generating sales from total assets.
- Match Group Inc.'s total asset turnover has also been fluctuating over the past five years, with a noticeable increase from 2019 to 2020, followed by some decline in subsequent years.
- The company's total asset turnover ratios have generally been below 1, indicating that Match Group Inc. may not be as efficient in generating sales revenue from its total assets compared to other companies with higher ratios.
- While there has been some fluctuation in total asset turnover, the company may benefit from further analyzing and optimizing the use of its total assets to improve overall efficiency in revenue generation.
In conclusion, analyzing Match Group Inc.'s long-term activity ratios reveals that the company has shown strong performance in utilizing fixed assets to generate revenue, but there is room for improvement in efficiently leveraging total assets to drive sales. Continued monitoring and strategic asset management may help the company enhance its overall operational efficiency and financial performance.