Matador Resources Company (MTDR)

Inventory turnover

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Cost of revenue	US$ in thousands	313,296	249,934	217,164	101,098	751,964
Inventory	US$ in thousands	38,469	41,808	15,184	12,188	10,584
Inventory turnover		8.14	5.98	14.30	8.29	71.05

December 31, 2024 calculation

Inventory turnover = Cost of revenue ÷ Inventory
= $313,296K ÷ $38,469K
= 8.14

The inventory turnover of Matador Resources Company has experienced fluctuations over the past five years.

- In December 2020, the inventory turnover was exceptionally high at 71.05, indicating that the company's inventory was sold and replenished multiple times during a year.

- However, this exceptionally high turnover in 2020 decreased significantly by December 2021 to 8.29, reflecting a slower rate of inventory turnover compared to the previous year.

- In December 2022, the inventory turnover improved to 14.30, indicating a faster rate of inventory turnover compared to the previous year, but still not as high as in 2020.

- By December 2023, the inventory turnover dropped to 5.98, suggesting a slower rate of inventory turnover compared to the previous year, indicating potential inefficiencies or excess inventory.

- In December 2024, the inventory turnover slightly increased to 8.14, but it still remained below the levels seen in 2020 and 2022.

Overall, the fluctuation in inventory turnover over the years indicates potential changes in demand, inventory management practices, or industry conditions that may have influenced the company's ability to efficiently manage and sell its inventory.