Match Group Inc (MTCH)
Working capital turnover
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (ttm) | US$ in thousands | 3,364,504 | 3,284,429 | 3,212,375 | 3,177,336 | 3,188,843 | 3,208,760 | 3,201,049 | 3,114,296 | 2,983,277 | 2,828,614 | 2,666,549 | 2,514,239 | 2,391,269 | 2,287,029 | 2,188,752 | 2,131,275 | 2,051,258 | 2,621,291 | 3,158,978 | 3,730,045 |
| Total current assets | US$ in thousands | 1,271,310 | 1,118,280 | 1,128,930 | 950,929 | 882,385 | 705,547 | 804,813 | 1,233,810 | 1,218,250 | 1,052,060 | 634,476 | 1,204,240 | 1,020,210 | 738,159 | 451,748 | 3,536,310 | 3,708,060 | 3,684,290 | 3,914,090 | 2,829,900 |
| Total current liabilities | US$ in thousands | 531,768 | 570,135 | 534,158 | 552,366 | 556,354 | 601,736 | 627,686 | 1,074,030 | 1,168,300 | 747,954 | 577,967 | 469,924 | 500,036 | 488,195 | 459,042 | 1,064,420 | 1,010,180 | 1,036,280 | 953,462 | 907,820 |
| 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 |
December 31, 2023 calculation
Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $3,364,504K ÷ ($1,271,310K – $531,768K)
= 4.55
The working capital turnover ratio measures how efficiently a company is utilizing its working capital to generate revenue. A higher ratio indicates that the company is effectively managing its working capital.
In the case of Match Group Inc., the working capital turnover ratio has varied over the quarters provided. In Q1 2022, the ratio was relatively low at 4.55, indicating that the company was not efficiently utilizing its working capital to generate revenue. However, there was a significant improvement in Q2 2022, with the ratio jumping to 18.07 and further increasing to 30.91 in Q3 2022. This suggests that Match Group Inc. significantly improved its working capital management during that period.
The ratio then declined in the following quarters but remained relatively high, indicating continued efficiency in utilizing working capital to generate revenue. In Q1 2023, the ratio was 7.97, while in Q2 and Q3 2023, the ratios were 5.40 and 5.99, respectively. This indicates that Match Group Inc. maintained a good level of efficiency in working capital management despite fluctuations.
Overall, Match Group Inc.'s working capital turnover ratios show fluctuations but generally reflect a strong ability to efficiently utilize its working capital to generate revenue over the quarters analyzed.
Peer comparison
Dec 31, 2023