Matador Resources Company (MTDR)

Payables 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
Payables	US$ in thousands	147,139	114,206	96,241	121,823	68,185	81,439	75,275	45,284	58,848	61,105	39,526	33,973	26,256	33,402	13,573	30,198	13,982	18,662	15,747	17,659
Payables turnover		2.13	2.25	2.70	2.12	3.67	2.67	2.82	4.64	3.69	1.83	2.75	3.20	3.85	23.27	70.49	31.36	67.31	13.97	4.90	4.67

December 31, 2024 calculation

Payables turnover = Cost of revenue (ttm) ÷ Payables
= $313,296K ÷ $147,139K
= 2.13

The payables turnover ratio measures how efficiently a company manages its trade credit by paying its suppliers. A higher payables turnover ratio indicates that the company is paying its suppliers more frequently.

Analyzing the payables turnover ratio for Matador Resources Company over the reporting period:

- The ratio increased steadily from March 31, 2020, to reach a peak of 70.49 on June 30, 2021, which suggests that the company was managing its accounts payable more efficiently during that period.
- However, the ratio then declined significantly by September 30, 2021, indicating a change in the company's payment strategies or supplier relations.
- Following a fluctuating pattern, the payables turnover ratio decreased to its lowest level of 1.83 on September 30, 2022, before showing some fluctuations but staying relatively low until December 31, 2024.

Overall, the payables turnover ratio for Matador Resources Company has shown significant fluctuations over the reporting period, with peaks and troughs indicating changes in the company's payment practices and relationships with suppliers. Further analysis of the company's financial statements and operational activities would be necessary to fully understand the reasons behind these fluctuations.