Matador Resources Company (MTDR)

Short-term

Turnover ratios

Inventory Turnover Ratio Analysis:
- The inventory turnover ratio measures Matador Resources Company's ability to efficiently manage its inventory.
- The trend shows a fluctuating pattern over the years, with a significant increase from September 2020 to December 2021, indicating better efficiency in inventory management during that period.
- However, there was a decline in the ratio from December 2021 to September 2024, suggesting a potential increase in average inventory held or a slowdown in sales.

Receivables Turnover Ratio Analysis:
- The receivables turnover ratio assesses how effectively Matador Resources collects its outstanding receivables.
- The ratio has shown variations over time, with a general decreasing trend from March 2020 to December 2024, indicating a potential slowdown in collections efficiency.
- The highest ratio was observed in December 2021, suggesting an improvement in the collection process at that time.

Payables Turnover Ratio Analysis:
- The payables turnover ratio analyzes how quickly Matador Resources pays its suppliers.
- The trend depicts fluctuations over the years, with a notable increase from December 2021 to March 2022, indicating a faster payment cycle during that period.
- Subsequently, the ratio decreased until December 2024, implying a potential slowdown in payment activity or a change in the company's payment terms.

Working Capital Turnover Ratio Analysis:
- The working capital turnover ratio evaluates how efficiently Matador Resources utilizes its working capital to generate revenue.
- The data is limited, with values available only from June 2022 to December 2023, showing fluctuations during those periods.
- The significant increase in the ratio from December 2022 to March 2023 suggests a higher revenue generation relative to working capital during that time.
- However, the lack of data for the other periods limits a comprehensive analysis of this ratio.

Overall, a detailed analysis of Matador Resources Company's activity ratios reveals varying levels of efficiency in managing inventory, collecting receivables, and paying payables over the years, influencing the company's operational performance and financial health.

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Average number of days

Matador Resources Company's activity ratios provide insights into its efficiency in managing inventory, collecting receivables, and paying its suppliers.

1. Days of Inventory on Hand (DOH):
- The company's DOH fluctuated significantly over the periods analyzed, ranging from as low as 4.11 days to as high as 61.06 days.
- A lower DOH indicates the company is efficiently managing its inventory, whereas a higher DOH may suggest potential issues like excess inventory or slow sales.

2. Days of Sales Outstanding (DSO):
- DSO measures how long it takes for the company to collect revenue from credit sales.
- Matador Resources' DSO also varied, with values ranging from 47.52 days to 85.21 days.
- A lower DSO is preferable as it implies quicker collection of receivables, while a high DSO could indicate ineffective credit policies or difficulties in collecting payments.

3. Number of Days of Payables:
- This ratio signifies how long the company takes to pay its suppliers.
- Matador Resources experienced fluctuations in the number of days of payables, ranging from 5.18 days to 199.49 days.
- A longer period of payables may indicate favorable credit terms with suppliers, but it could also suggest cash flow issues or strain on vendor relationships.

In summary, analyzing these activity ratios provides valuable insights into Matador Resources' operational efficiency and effectiveness in managing its working capital components. Tracking these ratios over time can help identify trends, areas for improvement, and potential risks related to inventory, receivables, and payables management.

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Long-term

Matador Resources Company's long-term fixed asset turnover ratio has shown a fluctuating trend over the years, starting at 0.30 in March 2020, reaching its lowest point at 0.22 in March 2021, and gradually increasing to 0.40 by December 2024. This ratio indicates the efficiency of the company in generating revenue from its fixed assets.

In contrast, the total asset turnover ratio reflects a similar pattern, albeit with slightly different values. It started at 0.27 in March 2020, decreased to 0.20 by March 2021, and then gradually rose to 0.32 by December 2024. This ratio measures how well the company is using its total assets to generate revenue.

Overall, the fixed asset turnover and total asset turnover ratios of Matador Resources Company suggest varying levels of efficiency in utilizing fixed and total assets to generate revenue over the years, with some improvements in performance observed towards the end of the reporting period.