Matador Resources Company (MTDR)

Days of sales outstanding (DSO)

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Receivables turnover		5.35	5.93	6.74	6.89	6.29
DSO	days	68.18	61.50	54.17	52.99	58.06

December 31, 2024 calculation

DSO = 365 ÷ Receivables turnover
= 365 ÷ 5.35
= 68.18

Matador Resources Company's Days of Sales Outstanding (DSO) measures the average number of days it takes for the company to collect payment after making a sale. Looking at the trend over the years, we observe a slight decrease in the DSO from 58.06 days as of December 31, 2020, to 52.99 days as of December 31, 2021, indicating an improvement in the company's collection efficiency.

However, the DSO increased to 54.17 days by December 31, 2022, and further rose to 61.50 days by December 31, 2023, suggesting a potential delay in collecting payments from customers. This increase is a point of concern as it may indicate issues with accounts receivable management or a slowing down in the collection process.

As of December 31, 2024, the DSO rose to 68.18 days, reflecting a continued increase in the time taken to convert sales into cash. This trend suggests that Matador Resources Company may be facing challenges in efficiently collecting payments from customers, which could impact its cash flow and liquidity position.

In conclusion, Matador Resources Company's Days of Sales Outstanding has shown fluctuations over the years, with both improvements and deteriorations. Management should closely monitor and address the factors contributing to the increasing DSO to ensure efficient cash flow management and strengthen the company's financial position.