Matador Resources Company (MTDR)

Inventory 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
Cost of revenue (ttm)	US$ in thousands	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	84,465	75,866	73,565	103,464
Inventory	US$ in thousands	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	10,744	14,678	20,281	18,779
Inventory turnover		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	7.86	5.17	3.63	5.51

December 31, 2023 calculation

Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $249,934K ÷ $41,808K
= 5.98

The inventory turnover ratio for Matador Resources Co has remained at 0.00 for all quarters in the provided data. This indicates that the company is not effectively managing its inventory levels or is facing challenges in selling its inventory. A low or zero inventory turnover ratio may suggest issues such as overstocking, obsolete inventory, weak sales, or poor demand for the company's products.

It is crucial for the company to closely monitor and analyze its inventory management practices to improve efficiency, reduce carrying costs, and enhance overall profitability. A consistently low inventory turnover ratio can lead to liquidity issues and tie up valuable resources in stagnant inventory. Management may need to reassess its inventory control strategies, streamline operations, and align production with market demand to address this concerning trend.