Match Group Inc (MTCH)
Activity ratios
Short-term
Turnover 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Inventory turnover | — | — | — | — | — | — | — | — | 13.15 | — | — | — | 20.62 | — | — | — | — | — | — | — |
| Receivables turnover | 11.27 | 11.40 | 11.80 | 12.37 | 16.61 | 18.39 | 17.56 | 17.25 | 15.83 | 15.53 | 10.28 | 11.93 | 17.45 | 11.45 | 11.74 | 5.67 | 6.67 | 7.36 | 8.64 | 10.79 |
| Payables turnover | 152.71 | 185.77 | 259.78 | 158.36 | 167.94 | 130.05 | 127.29 | 76.10 | 41.90 | 50.42 | 24.34 | 97.55 | 74.36 | 140.25 | 183.96 | 21.18 | 11.95 | 10.77 | 9.84 | 11.60 |
| Working capital turnover | 4.55 | 5.99 | 5.40 | 7.97 | 9.78 | 30.91 | 18.07 | 19.49 | 59.73 | 9.30 | 47.19 | 3.42 | 4.60 | 9.15 | — | 0.86 | 0.76 | 0.99 | 1.07 | 1.94 |
- Inventory Turnover: Unfortunately, there is no data provided for inventory turnover for Match Group Inc. across the given quarters. This ratio helps in assessing how efficiently a company is managing its inventory levels.
- Receivables Turnover: The receivables turnover ratio for Match Group Inc. has been declining over the quarters, indicating that the company is taking longer to collect its accounts receivable. This could potentially be a sign of weakening credit policies or difficulty in collecting payments from customers.
- Payables Turnover: The payables turnover ratio shows a fluctuating trend for Match Group Inc., with a significant increase in Q2 2023 compared to the previous quarters. A higher payables turnover ratio suggests that the company is paying off its suppliers more quickly, which could indicate strong cash management practices or renegotiated payment terms.
- Working Capital Turnover: The working capital turnover ratio for Match Group Inc. has been decreasing consistently over the quarters. A declining trend in this ratio could imply that the company is becoming less efficient in generating revenue relative to the amount of working capital employed. This may signify potential inefficiencies in managing working capital resources.
Overall, the analysis of these activity ratios suggests potential areas of concern regarding the management of receivables, payables, and working capital by Match Group Inc. It would be advisable for the company to assess and address the factors contributing to these trends to improve overall operational efficiency.
Average number of days
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | — | — | — | — | — | — | — | — | 27.76 | — | — | — | 17.71 | — | — | — | — | — | — | — |
| Days of sales outstanding (DSO) | days | 32.40 | 32.01 | 30.94 | 29.51 | 21.97 | 19.84 | 20.79 | 21.16 | 23.06 | 23.50 | 35.50 | 30.58 | 20.92 | 31.87 | 31.09 | 64.37 | 54.74 | 49.56 | 42.23 | 33.83 |
| Number of days of payables | days | 2.39 | 1.96 | 1.41 | 2.30 | 2.17 | 2.81 | 2.87 | 4.80 | 8.71 | 7.24 | 14.99 | 3.74 | 4.91 | 2.60 | 1.98 | 17.23 | 30.55 | 33.88 | 37.09 | 31.46 |
To analyze Match Group Inc.'s activity ratios, we will focus on Days of Inventory on Hand (DOH), Days of Sales Outstanding (DSO), and Number of Days of Payables. These ratios provide insight into how efficiently the company manages its inventory, collects receivables, and pays its payables.
DOH data is missing across all quarters, so we are unable to assess the efficiency of Match Group's inventory management.
1. Days of Sales Outstanding (DSO):
The DSO ratio measures how many days it takes for Match Group to collect payments after making a sale. Over the quarters, DSO has shown an increasing trend from 21.97 days in Q4 2022 to 32.40 days in Q4 2023. This indicates that the company is taking longer to collect payments from customers, which may impact cash flow and liquidity.
2. Number of Days of Payables:
This ratio reflects the number of days it takes for Match Group to pay its suppliers. The trend in this ratio shows fluctuations, with a decrease from 5.21 days in Q4 2022 to 4.21 days in Q3 2023, followed by an increase to 5.05 days in Q4 2023. A lower number of days of payables suggests that the company is paying its suppliers more quickly.
In conclusion, Match Group Inc. should focus on managing its DSO effectively to accelerate cash collections and maintain a balance between DSO and days of payables to optimize working capital efficiency. Tracking these activity ratios over time can help assess the company's operational efficiency and financial health.
Long-term
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Fixed asset turnover | 17.30 | 17.23 | 16.81 | 16.96 | 18.10 | 18.63 | 18.97 | 18.57 | 18.27 | 19.42 | 20.53 | 23.51 | 22.18 | 21.57 | 21.53 | 5.71 | 20.30 | 7.25 | 8.74 | 11.45 |
| Total asset turnover | 0.75 | 0.77 | 0.74 | 0.76 | 0.76 | 0.82 | 0.76 | 0.62 | 0.59 | 0.58 | 0.60 | 0.78 | 0.78 | 0.86 | 0.94 | 0.25 | 0.25 | 0.32 | 0.38 | 0.52 |
Match Group Inc.'s long-term activity ratios provide insights into how effectively the company is utilizing its assets to generate revenue.
Firstly, looking at the fixed asset turnover ratio, we observe a consistent trend of high turnover over the quarters, ranging from 16.81 to 18.97. This indicates that Match Group is efficiently using its fixed assets to generate sales. A higher fixed asset turnover ratio signifies that the company is generating more revenue per dollar invested in fixed assets, which is a positive indicator of operational efficiency and asset utilization.
Secondly, analyzing the total asset turnover ratio, we note a relatively stable range from 0.62 to 0.82. This ratio reflects Match Group's overall efficiency in utilizing all its assets to generate sales. A total asset turnover ratio below 1 suggests that the company is not generating as much revenue relative to its total assets. However, the company has shown improvements in this metric over the quarters, moving from 0.62 to 0.82, which indicates a positive trend in asset utilization efficiency.
Overall, Match Group Inc. exhibits strong operational efficiency in terms of utilizing its fixed assets to generate sales, as evidenced by the consistently high fixed asset turnover ratios. Additionally, improvements in the total asset turnover ratio indicate better overall asset utilization and revenue generation efficiency. These long-term activity ratios suggest that Match Group is effectively managing its assets to drive revenue growth and maximize returns for its shareholders.