Matador Resources Company (MTDR)

Activity ratios

Short-term

Turnover ratios

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
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
Receivables turnover 5.93 5.08 5.96 7.39 6.74 6.98 5.56 5.34 6.89 5.32 4.87 4.28 6.29 6.71 6.99 7.68 5.19 5.32 6.20 5.86
Payables turnover 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 3.35 1.87 3.71 2.15
Working capital turnover 91.73 — — 7.54 6.17 9.67 13.29 — — — — — — — — — — — — —

The activity ratios of Matador Resources Co reveal some interesting trends.

Inventory turnover has been consistently reported as 0.00 across all quarters, indicating that the company is not effectively managing its inventory levels or experiencing challenges in selling its inventory.

On the other hand, the receivables turnover ratio has shown fluctuations over the quarters, with higher values in Q1 and Q3 of 2023 compared to previous quarters. This suggests that the company is collecting its accounts receivable more efficiently during these periods.

The payables turnover ratio remains at 0.00 across all quarters, which could indicate that the company may not have significant trade payables or is managing its payables in a way that does not result in frequent turnover.

The working capital turnover ratio has shown variability, with a significant increase in Q4 of 2023 compared to previous quarters. This could indicate that the company is generating more revenue relative to its working capital during this period.

Overall, the activity ratios of Matador Resources Co suggest that the company may be experiencing challenges in effectively managing its inventory and payables turnover, but is improving its efficiency in collecting receivables and generating revenue relative to its working capital.

Average number of days

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
Days of inventory on hand (DOH) days 61.06 59.58 52.97 34.83 25.52 46.97 44.24 41.83 44.00 5.70 4.45 4.26 4.11 16.54 56.49 51.51 46.43 70.62 100.63 66.25
Days of sales outstanding (DSO) days 61.50 71.81 61.23 49.37 54.17 52.31 65.65 68.40 52.99 68.63 74.96 85.21 58.06 54.39 52.25 47.52 70.28 68.63 58.86 62.33
Number of days of payables days 99.58 136.79 129.25 78.70 98.91 199.49 132.69 114.09 94.79 15.69 5.18 11.64 5.42 26.13 74.50 78.17 109.03 195.25 98.34 169.57

The analysis of Matador Resources Co's activity ratios reveals a fluctuating trend in the Days of Sales Outstanding (DSO) over the past eight quarters. DSO has ranged from a low of 51.65 days in Q3 2022 to a high of 76.14 days in Q3 2023, indicating variability in the company's collection efficiency. Generally, a lower DSO is preferred as it signifies quicker collection of receivables.

However, the data on Days of Inventory on Hand (DOH) is not provided, making it challenging to assess the efficiency of inventory management. Ideally, a lower DOH would indicate efficient inventory turnover.

The Number of Days of Payables is not available, preventing a comprehensive analysis of the company's payment practices and relationships with suppliers.

In conclusion, Matador Resources Co's DSO has exhibited significant fluctuations, highlighting the need for improved receivables management. To gain a more holistic view of the company's liquidity and operational efficiency, additional data on inventory turnover and payables turnover would be necessary.

Long-term

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
Fixed asset turnover 0.40 0.40 0.43 0.65 0.69 0.68 0.62 0.49 0.43 0.37 0.30 0.22 0.26 0.27 0.27 0.30 0.27 0.28 0.27 0.27
Total asset turnover 0.36 0.36 0.39 0.53 0.55 0.55 0.51 0.43 0.39 0.33 0.27 0.20 0.23 0.24 0.25 0.27 0.24 0.25 0.24 0.25

Matador Resources Co's fixed asset turnover ratio has shown a decreasing trend over the past eight quarters, starting at 0.50 in Q1 2022 and declining to 0.37 in Q4 2023. This indicates that the company is generating less revenue per dollar of fixed assets invested over time. A lower fixed asset turnover ratio may suggest that the company is not efficiently utilizing its fixed assets to generate sales.

Similarly, the total asset turnover ratio for Matador Resources Co has also shown a downward trajectory, decreasing from 0.44 in Q1 2022 to 0.33 in Q4 2023. This implies that the company's ability to generate sales from its total assets has weakened. A declining total asset turnover ratio could indicate inefficiencies in the company's overall asset management and utilization.

Overall, the decreasing trends in both fixed asset turnover and total asset turnover ratios for Matador Resources Co suggest potential challenges in effectively utilizing its assets to drive revenue generation. It may be beneficial for the company to reevaluate its asset management strategies and operational efficiencies to improve these long-term activity ratios.