Matador Resources Company (MTDR)

Working capital turnover

		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	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Revenue (ttm)	US$ in thousands	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	983,670	984,869	912,645	882,308
Total current assets	US$ in thousands	715,872	711,375	634,403	1,006,490	1,071,830	926,891	800,927	536,263	371,305	396,628	333,628	256,864	261,629	237,224	227,283	356,635	278,492	269,316	273,384	229,954
Total current liabilities	US$ in thousands	685,275	722,327	686,972	601,372	575,873	625,189	609,139	537,934	464,837	472,752	422,580	376,412	290,936	286,359	344,769	359,898	399,772	403,357	336,775	328,423
Working capital turnover		91.73	—	—	7.54	6.17	9.67	13.29	—	—	—	—	—	—	—	—	—	—	—	—	—

December 31, 2023 calculation

Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $2,806,785K ÷ ($715,872K – $685,275K)
= 91.73

The working capital turnover ratio for Matador Resources Co has fluctuated over the past few quarters. In Q4 2023, the ratio was 83.20, indicating that the company is generating significant revenue relative to its working capital. This potentially reflects efficient utilization of working capital to generate sales.

However, Q1 2023 and Q4 2022 show lower working capital turnover ratios of 7.16 and 5.86, respectively. These lower ratios suggest that the company may not be effectively managing its working capital to generate revenue during those periods.

Q3 2022 and Q2 2022 had working capital turnover ratios of 9.79 and 13.48, respectively, indicating a relatively better utilization of working capital in generating revenue during those quarters.

It is important for Matador Resources Co to sustain a healthy working capital turnover ratio to ensure efficient management of its working capital and maximize revenue generation from its assets. Further analysis of the company's operations and cash flow management may provide insights into the reasons for the fluctuations in the working capital turnover ratio.