Matador Resources Company (MTDR)

Receivables turnover

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Revenue	US$ in thousands	2,806,780	3,058,020	1,662,980	862,126	983,670
Receivables	US$ in thousands	472,954	453,818	241,416	137,133	189,413
Receivables turnover		5.93	6.74	6.89	6.29	5.19

December 31, 2023 calculation

Receivables turnover = Revenue ÷ Receivables
= $2,806,780K ÷ $472,954K
= 5.93

The receivables turnover for Matador Resources Co has fluctuated over the past five years, ranging from 4.71 to 7.04. The ratio indicates the company's efficiency in collecting payments from its customers. A higher turnover ratio generally suggests that the company is collecting its accounts receivable more frequently within a given period.

In 2023, the receivables turnover ratio decreased to 5.38 from 6.40 in 2022. This could imply that Matador Resources took longer to collect payments from its customers in 2023 compared to the previous year. However, it is essential to further analyze the underlying reasons for this change, such as changes in credit policies or customer payment behavior.

Despite the decrease in 2023, Matador Resources Co's receivables turnover has shown overall improvement since 2019, indicating better efficiency in managing its accounts receivable. Further monitoring and analysis of this ratio will help assess the company's effectiveness in managing its receivables and collecting payments promptly.