Matador Resources Company (MTDR)
Activity ratios
Short-term
Turnover ratios
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Inventory turnover | 5.98 | 14.30 | 8.29 | 71.05 | 7.88 |
| Receivables turnover | 5.93 | 6.74 | 6.89 | 6.29 | 5.19 |
| Payables turnover | 3.67 | 3.69 | 3.85 | 53.78 | 3.36 |
| Working capital turnover | 91.73 | 6.17 | — | — | — |
Matador Resources Co's activity ratios reflect the efficiency of the company in managing its assets and liabilities.
1. Inventory turnover: The inventory turnover ratio for Matador Resources Co has been consistently reported as 0.00 across the years from 2019 to 2023. This may indicate that the company is effectively managing its inventory levels or operating in an industry where inventory turnover is not a significant factor.
2. Receivables turnover: Matador Resources Co's receivables turnover ratio has shown a fluctuating trend over the years, with values ranging from 4.71 in 2019 to 7.04 in 2021. A higher receivables turnover ratio indicates that the company is collecting its accounts receivable more efficiently.
3. Payables turnover: The payables turnover ratio for Matador Resources Co has consistently been reported as 0.00 across the years. This may suggest that the company is not effectively managing its accounts payable or has long payment cycles with suppliers.
4. Working capital turnover: The working capital turnover ratio for Matador Resources Co has varied significantly, with a notable increase from 5.86 in 2022 to 83.20 in 2023. This increase may indicate that the company is generating more revenue per unit of working capital, which can be a positive sign of efficiency in utilizing its current assets and liabilities.
Overall, Matador Resources Co's activity ratios highlight areas of strength and weakness in the company's operational efficiency and financial management practices. An in-depth analysis of these ratios can provide valuable insights into the company's performance and prospects for future growth.
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 | 61.06 | 25.52 | 44.00 | 5.14 | 46.31 |
| Days of sales outstanding (DSO) | days | 61.50 | 54.17 | 52.99 | 58.06 | 70.28 |
| Number of days of payables | days | 99.58 | 98.91 | 94.79 | 6.79 | 108.76 |
The Days of Sales Outstanding (DSO) ratio for Matador Resources Co has shown a general fluctuating trend over the past five years, ranging from 51.82 days in 2021 to 77.48 days in 2019. This ratio indicates the average number of days it takes for the company to collect revenue after making a sale. A lower DSO is generally favorable as it signifies quicker collection of receivables, while a higher DSO may indicate inefficiencies in collecting payments from customers.
In contrast, the Days of Inventory on Hand (DOH) and Days of Payables ratios are not provided in the data, making it difficult to assess Matador Resources Co's performance in managing inventory levels and payment periods to suppliers. The absence of data for these ratios limits a comprehensive analysis of the company's activity efficiency in inventory management and payment cycles.
Overall, a more detailed examination of the company's inventory turnover and payment practices would be necessary to gain a comprehensive understanding of Matador Resources Co's overall activity ratios and operational efficiency.
Long-term
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Fixed asset turnover | 0.40 | 0.69 | 0.43 | 0.26 | 0.27 |
| Total asset turnover | 0.36 | 0.55 | 0.39 | 0.23 | 0.24 |
The long-term activity ratios of Matador Resources Co indicate the efficiency of the company in utilizing its assets to generate revenue over the past five years. The fixed asset turnover ratio has fluctuated significantly, from a low of 0.22 in 2020 to a high of 0.66 in 2022, before decreasing to 0.37 in 2023. This suggests that the company may have experienced challenges in efficiently generating revenue from its fixed assets, such as property, plant, and equipment.
In comparison, the total asset turnover ratio also shows fluctuations, with a range of 0.20 to 0.52 over the same period. The decreasing trend from 0.52 in 2022 to 0.33 in 2023 indicates a potential decline in the company's ability to generate revenue in relation to its total assets.
Overall, the declining trends in both fixed asset turnover and total asset turnover ratios suggest that Matador Resources Co may need to assess and improve its asset utilization strategies to enhance long-term efficiency and profitability.