Match Group Inc (MTCH)
Working capital turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 3,364,500 | 3,188,840 | 2,983,280 | 2,391,270 | 2,051,260 |
| Total current assets | US$ in thousands | 1,271,310 | 882,385 | 1,218,250 | 1,020,210 | 3,708,060 |
| Total current liabilities | US$ in thousands | 531,768 | 556,354 | 1,168,300 | 500,036 | 1,010,180 |
| Working capital turnover | 4.55 | 9.78 | 59.73 | 4.60 | 0.76 |
December 31, 2023 calculation
Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $3,364,500K ÷ ($1,271,310K – $531,768K)
= 4.55
The working capital turnover ratio measures how efficiently a company utilizes its working capital to generate revenue. A higher ratio indicates better utilization of working capital.
For Match Group Inc., the working capital turnover decreased significantly from 59.73 in 2021 to 4.55 in 2023. This shows that the company may have experienced challenges in efficiently converting its working capital into revenue in 2023 compared to the previous year.
In 2022, the ratio was notably high at 9.78, indicating a more efficient use of working capital to generate revenue. However, this was followed by a drop in 2023. Additionally, the ratios in 2020 and 2019 were 4.60 and 1.76, respectively, showing fluctuation in the company's efficiency in utilizing its working capital over the years.
It is essential for Match Group Inc. to closely monitor and manage its working capital turnover to ensure optimal efficiency in generating revenue from its current assets. The decrease in the ratio in 2023 may warrant further investigation to identify reasons for the decline and implement strategies to improve the utilization of working capital in the future.
Peer comparison
Dec 31, 2023