Matador Resources Company (MTDR)
Payables 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 |
| Payables | US$ in thousands | 147,139 | 68,185 | 58,848 | 26,256 | 13,982 |
| Payables turnover | 2.13 | 3.67 | 3.69 | 3.85 | 53.78 |
December 31, 2024 calculation
Payables turnover = Cost of revenue ÷ Payables
= $313,296K ÷ $147,139K
= 2.13
Matador Resources Company's payables turnover ratio has exhibited a declining trend over the period from December 31, 2020, to December 31, 2024. The ratio decreased significantly from 53.78 in 2020 to 2.13 in 2024.
A high payables turnover ratio typically indicates that a company is efficiently managing its payables by quickly paying off its suppliers. Conversely, a low ratio may suggest that the company is taking longer to pay its suppliers, which could potentially strain supplier relationships and impact the company's creditworthiness.
The decreasing trend in Matador Resources Company's payables turnover ratio may be a cause for concern, as it indicates that the company is taking longer to pay its suppliers over time. This could potentially impact the company's relationships with suppliers and its overall liquidity position. Further analysis of the company's payment policies and supplier agreements may be necessary to address this trend and its potential implications for the company's financial health.
Peer comparison
Dec 31, 2024