Matador Resources Company (MTDR)
Total asset turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 3,504,980 | 2,806,780 | 3,058,020 | 1,662,980 | 862,126 |
| Total assets | US$ in thousands | 10,850,100 | 7,727,000 | 5,554,500 | 4,262,150 | 3,687,280 |
| Total asset turnover | 0.32 | 0.36 | 0.55 | 0.39 | 0.23 |
December 31, 2024 calculation
Total asset turnover = Revenue ÷ Total assets
= $3,504,980K ÷ $10,850,100K
= 0.32
Total asset turnover is a key financial ratio that measures a company's efficiency in generating sales revenue from its total assets. Looking at the data provided for Matador Resources Company, there has been a fluctuation in the total asset turnover over the years.
As of December 31, 2020, the total asset turnover was 0.23, indicating that for every dollar of assets, Matador Resources generated $0.23 in sales. This figure increased significantly to 0.39 by December 31, 2021, suggesting an improvement in the company's asset utilization efficiency.
The ratio continued to rise to 0.55 by December 31, 2022, reaching its peak during this period. This indicates that Matador Resources was able to generate more sales revenue relative to its total assets, reflecting an efficient use of assets to drive revenue.
However, there was a decline in total asset turnover to 0.36 by December 31, 2023, followed by a further decrease to 0.32 by December 31, 2024. These lower ratios imply a reduced ability to generate sales from the company's assets, which could be a concern regarding efficiency and asset utilization.
In summary, while there were fluctuations in total asset turnover for Matador Resources Company, the trend initially showed improvement but later declined. It is important for the company to closely monitor and manage its asset turnover ratio to ensure optimal utilization of resources and maximize revenue generation.
Peer comparison
Dec 31, 2024