Matador Resources Company (MTDR)

Fixed asset turnover

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Revenue	US$ in thousands	2,806,780	3,058,020	1,662,980	862,126	983,670
Property, plant and equipment	US$ in thousands	6,956,440	4,418,200	3,856,680	3,367,770	3,699,600
Fixed asset turnover		0.40	0.69	0.43	0.26	0.27

December 31, 2023 calculation

Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $2,806,780K ÷ $6,956,440K
= 0.40

The fixed asset turnover ratio measures how efficiently a company is utilizing its fixed assets to generate revenue. A higher fixed asset turnover ratio indicates better asset utilization.

Looking at the trend for Matador Resources Co over the past five years, we observe fluctuations in the fixed asset turnover ratio:

1. In 2023, the fixed asset turnover ratio decreased to 0.37 from 0.66 in 2022, indicating a decline in asset efficiency. This suggests that the company generated less revenue relative to its fixed assets in 2023.

2. The ratio was highest in 2022 at 0.66, showing an improvement in asset productivity compared to the previous years.

3. In 2021, the fixed asset turnover ratio was 0.44, slightly lower than in 2022 but still higher than the ratios for 2020 and 2019.

4. The ratio was 0.22 in 2020, indicating a significant decrease in asset efficiency compared to the previous years.

5. In 2019, the fixed asset turnover ratio was 0.24, showing a slight improvement from 2018 but still lower than the ratios for 2020 and 2021.

Overall, the trend in Matador Resources Co's fixed asset turnover ratio shows fluctuations over the past five years, indicating varying degrees of efficiency in utilizing fixed assets to generate revenue. Investors and analysts may want to further investigate the reasons behind these fluctuations to assess the company's operational performance and asset management strategies.