Matador Resources Company (MTDR)

Fixed asset turnover

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Revenue	US$ in thousands	3,504,980	2,806,780	3,058,020	1,662,980	862,126
Property, plant and equipment	US$ in thousands	9,760,840	6,956,440	4,418,200	3,856,680	3,367,770
Fixed asset turnover		0.36	0.40	0.69	0.43	0.26

December 31, 2024 calculation

Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $3,504,980K ÷ $9,760,840K
= 0.36

Matador Resources Company's fixed asset turnover has exhibited fluctuations over the past five years. The metric stood at 0.26 as of December 31, 2020, indicating that the company generated $0.26 in sales for every dollar invested in fixed assets.

Subsequently, there was a significant improvement in the fixed asset turnover to 0.43 as of December 31, 2021, suggesting that the company became more efficient in utilizing its fixed assets to generate revenue.

In the following year, by December 31, 2022, the fixed asset turnover further increased to 0.69, signaling a notable enhancement in operational efficiency and asset utilization.

However, by December 31, 2023, the fixed asset turnover ratio declined to 0.40, indicating a potential decrease in efficiency in converting fixed assets into sales.

As of December 31, 2024, the fixed asset turnover ratio decreased slightly to 0.36. This decline may imply that the company's ability to generate revenue from its fixed assets diminished compared to the previous year.

Overall, the trend in Matador Resources Company's fixed asset turnover demonstrates both improvements and setbacks in the efficient utilization of fixed assets to generate sales over the five-year period.