Matador Resources Company (MTDR)

Fixed asset turnover

		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
Revenue (ttm)	US$ in thousands	2,806,785	2,678,128	2,746,762	3,052,609	3,058,025	2,916,908	2,548,331	1,961,828	1,662,981	1,320,858	1,051,893	757,386	862,126	926,566	1,002,582	1,181,366	983,670	984,869	912,645	882,308
Property, plant and equipment	US$ in thousands	6,956,440	6,675,940	6,439,250	4,706,160	4,418,200	4,318,270	4,103,580	3,995,640	3,856,680	3,536,180	3,462,030	3,437,360	3,367,770	3,482,510	3,662,930	3,887,230	3,699,600	3,560,120	3,383,340	3,277,180
Fixed asset turnover		0.40	0.40	0.43	0.65	0.69	0.68	0.62	0.49	0.43	0.37	0.30	0.22	0.26	0.27	0.27	0.30	0.27	0.28	0.27	0.27

December 31, 2023 calculation

Fixed asset turnover = Revenue (ttm) ÷ Property, plant and equipment
= $2,806,785K ÷ $6,956,440K
= 0.40

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

Analyzing the data provided for Matador Resources Co, we observe a fluctuation in the fixed asset turnover ratio over the past eight quarters. The ratio has ranged from a low of 0.37 in Q4 2023 to a high of 0.68 in Q3 2022.

In the most recent quarters, the fixed asset turnover has been declining, indicating a decrease in the company's ability to generate revenue from its fixed assets. The ratio dropped from 0.62 in Q1 2023 to 0.37 in Q4 2023, reflecting a potential inefficiency in utilizing its fixed assets to generate sales.

On the other hand, the highest ratio of 0.68 in Q3 2022 suggests that Matador Resources Co was able to effectively generate revenue relative to its fixed asset base during that period. However, the subsequent decline in the ratio over the following quarters may raise concerns about the company's operational efficiency and asset management.

Overall, the fluctuating trend in the fixed asset turnover ratio for Matador Resources Co indicates varying levels of efficiency in utilizing its fixed assets to generate revenue. Further analysis and investigation into the factors influencing this ratio's movement would be beneficial in understanding the company's operational performance and asset utilization strategies.