Matador Resources Company (MTDR)

Inventory turnover

		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
Cost of revenue (ttm)	US$ in thousands	313,296	256,958	259,463	257,728	249,934	217,300	212,579	210,020	217,164	111,803	108,726	108,686	101,098	777,217	956,744	947,054	941,064	260,696	77,150	82,459
Inventory	US$ in thousands	38,469	34,119	38,046	39,927	41,808	35,468	30,848	20,039	15,184	14,388	13,179	12,456	12,188	12,137	11,657	11,045	10,584	11,813	11,940	11,638
Inventory turnover		8.14	7.53	6.82	6.45	5.98	6.13	6.89	10.48	14.30	7.77	8.25	8.73	8.29	64.04	82.07	85.75	88.91	22.07	6.46	7.09

December 31, 2024 calculation

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

The inventory turnover ratio for Matador Resources Company fluctuated over the period from March 31, 2020, to December 31, 2024. It started at 7.09 times on March 31, 2020, gradually increased to a peak of 88.91 times on December 31, 2020, and then exhibited a downward trend. The ratio decreased significantly to 5.98 times by December 31, 2023.

In general, a higher inventory turnover ratio indicates that the company is selling its inventory more efficiently. However, a very high turnover rate may suggest frequent stockouts, while a low rate could indicate overstocking or declining sales. Matador Resources experienced significant fluctuations in its inventory turnover ratio over the analyzed period, which could be attributed to changes in sales volume, inventory management strategies, or external market conditions.