Matador Resources Company (MTDR)

Receivables 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
Revenue (ttm)	US$ in thousands	3,504,981	3,370,744	3,243,255	3,034,202	2,806,785	2,678,128	2,746,762	3,052,609	3,058,025	2,916,908	2,548,331	1,961,828	1,662,981	1,320,858	1,051,893	757,386	862,126	926,566	1,002,582	1,181,366
Receivables	US$ in thousands	654,729	606,137	528,040	528,473	472,954	526,914	460,751	412,912	453,818	418,056	458,369	367,644	241,416	248,354	216,033	176,814	137,133	138,079	143,514	153,789
Receivables turnover		5.35	5.56	6.14	5.74	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

December 31, 2024 calculation

Receivables turnover = Revenue (ttm) ÷ Receivables
= $3,504,981K ÷ $654,729K
= 5.35

The receivables turnover ratio of Matador Resources Company has fluctuated over the periods under review. The trend shows a gradual decline from 7.68 in March 2020 to 5.35 in December 2024. This indicates that the company is collecting its accounts receivable less frequently over time.

A high turnover ratio is generally favorable as it suggests that the company is efficient in converting its receivables into cash. Conversely, a decreasing turnover ratio may raise concerns about potential issues in collecting payments from customers, which could impact cash flow and liquidity.

It is important for Matador Resources Company to closely monitor and manage its accounts receivable collection process to ensure timely payments and maintain a healthy cash flow position. There may be a need to review credit policies, communicate with customers to expedite payments, or implement stricter collection procedures to improve the receivables turnover ratio and overall financial health of the company.