Matador Resources Company (MTDR)
Working capital 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 current assets | US$ in thousands | 715,872 | 1,071,830 | 371,305 | 261,629 | 278,492 |
| Total current liabilities | US$ in thousands | 685,275 | 575,873 | 464,837 | 290,936 | 399,772 |
| Working capital turnover | 91.73 | 6.17 | — | — | — |
December 31, 2023 calculation
Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $2,806,780K ÷ ($715,872K – $685,275K)
= 91.73
The working capital turnover for Matador Resources Co has shown a significant increase over the years, indicating a notable improvement in the efficiency of its working capital management.
In 2019, the working capital turnover was not available, but starting from 2020, there was a substantial leap from an unspecified figure to 5.86 in 2022. This sudden increase suggests a more effective utilization of the company's working capital to generate revenue.
The most remarkable improvement was witnessed in 2023, with the working capital turnover surging to 83.20. This surge indicates that Matador Resources Co was able to generate a significant amount of revenue relative to its working capital investment, reflecting a considerable enhancement in operational efficiency and liquidity management practices.
Overall, the increasing trend in working capital turnover implies that Matador Resources Co has been able to efficiently deploy its working capital to support its operational activities and generate revenue, reflecting positively on the company's financial health and management effectiveness.
Peer comparison
Dec 31, 2023