Matador Resources Company (MTDR)

Days of sales outstanding (DSO)

		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
Receivables turnover		5.93	5.08	5.96	7.39	6.74	6.98	5.56	5.34	6.89	5.32	4.87	4.28	6.29	6.71	6.99	7.68	5.19	5.32	6.20	5.86
DSO	days	61.50	71.81	61.23	49.37	54.17	52.31	65.65	68.40	52.99	68.63	74.96	85.21	58.06	54.39	52.25	47.52	70.28	68.63	58.86	62.33

December 31, 2023 calculation

DSO = 365 ÷ Receivables turnover
= 365 ÷ 5.93
= 61.50

To analyze Matador Resources Co's Days Sales Outstanding (DSO) based on the data provided, we can observe the trend over the past eight quarters.

The DSO measures the average number of days it takes for a company to collect payments from its customers. A higher DSO indicates that the company is taking longer to collect payments, which could be a concern as it ties up working capital.

Looking at the quarterly DSO figures, we can see that there has been variability in the DSO for Matador Resources Co. In Q1 2023, the DSO was 51.96 days, indicating an efficient collection process. However, the DSO increased in Q2 and Q3 2023 to 64.82 days and 76.14 days, respectively, suggesting a potential delay in collecting payments during those periods.

Comparing the DSO to the same quarters in the previous year, we see fluctuations in performance. For instance, in Q4 2022, the DSO was 57.01 days, slightly lower than in Q4 2023 (67.81 days). This increase could signify a deterioration in the company's accounts receivable management.

Overall, it is essential for Matador Resources Co to closely monitor its DSO trend to ensure efficient cash flow management. They may need to implement strategies to improve collections processes and address any delays in receiving payments from customers.