Matador Resources Company (MTDR)

Days of sales outstanding (DSO)

		Dec 31, 2024	Sep 30, 2024	Jun 30, 2024	Mar 31, 2024	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
Receivables turnover		5.35	5.56	6.14	5.74	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
DSO	days	68.18	65.64	59.43	63.57	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

December 31, 2024 calculation

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

Days of Sales Outstanding (DSO) is a financial ratio that indicates the average number of days a company takes to collect payment after making a sale. For Matador Resources Company, the DSO has fluctuated over the past few quarters.

From March 31, 2020, to December 31, 2020, the DSO increased steadily from 47.52 days to 58.06 days, indicating a potential slowdown in collecting payments from customers. However, there was a significant spike in DSO to 85.21 days by March 31, 2021, suggesting a possible issue with accounts receivable management during that period.

Subsequently, Matador Resources Company managed to reduce its DSO to 52.99 days by December 31, 2021, showing improvement in its collection process. The DSO further fluctuated over the following quarters but generally remained within a range between 50 to 70 days, indicating a relatively stable collection period.

It is worth noting that a lower DSO typically signifies a more efficient accounts receivable management process, as the company is collecting payments faster. Conversely, a higher DSO may indicate potential delays in collecting outstanding receivables and could impact the company's cash flow and liquidity position.

For Matador Resources Company, monitoring the DSO trend can help assess the effectiveness of its credit and collection policies, identify potential cash flow issues, and evaluate the overall financial health of the company.