Matador Resources Company (MTDR)
Total asset 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 |
| Total assets | US$ in thousands | 7,727,000 | 5,554,500 | 4,262,150 | 3,687,280 | 4,069,680 |
| Total asset turnover | 0.36 | 0.55 | 0.39 | 0.23 | 0.24 |
December 31, 2023 calculation
Total asset turnover = Revenue ÷ Total assets
= $2,806,780K ÷ $7,727,000K
= 0.36
Matador Resources Co's total asset turnover has shown varying trends over the past five years. In 2023, the total asset turnover ratio decreased to 0.33 from 0.52 in 2022, indicating a decrease in the company's efficiency in generating revenue from its total assets. Despite the decrease in 2023, the ratio is still higher compared to 2021 and 2020, where it was 0.40 and 0.20, respectively.
The declining trend in total asset turnover from 2020 to 2022 raised concerns about the company's efficiency in utilizing its assets effectively to generate sales. However, the uptick in 2023 could signify potential improvements in asset utilization or increased revenues.
It is essential for Matador Resources Co to closely monitor its asset turnover ratio and implement strategies to enhance asset utilization efficiency. This ratio is crucial because it provides insights into how well the company is generating sales relative to its total assets, thus impacting overall profitability and financial performance.
Peer comparison
Dec 31, 2023