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.