Matador Resources Company (MTDR)
Cash conversion cycle
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 61.06 | 59.58 | 52.97 | 34.83 | 25.52 | 46.97 | 44.24 | 41.83 | 44.00 | 5.70 | 4.45 | 4.26 | 4.11 | 16.54 | 56.49 | 51.51 | 46.43 | 70.62 | 100.63 | 66.25 |
| Days of sales outstanding (DSO) | days | 61.50 | 71.81 | 61.23 | 49.37 | 54.17 | 52.31 | 65.65 | 68.40 | 52.99 | 68.63 | 74.96 | 85.21 | 58.06 | 54.39 | 52.25 | 47.52 | 70.28 | 68.63 | 58.86 | 62.33 |
| Number of days of payables | days | 99.58 | 136.79 | 129.25 | 78.70 | 98.91 | 199.49 | 132.69 | 114.09 | 94.79 | 15.69 | 5.18 | 11.64 | 5.42 | 26.13 | 74.50 | 78.17 | 109.03 | 195.25 | 98.34 | 169.57 |
| Cash conversion cycle | days | 22.98 | -5.41 | -15.06 | 5.50 | -19.22 | -100.20 | -22.80 | -3.86 | 2.20 | 58.64 | 74.23 | 77.83 | 56.74 | 44.80 | 34.24 | 20.86 | 7.68 | -56.00 | 61.14 | -40.99 |
December 31, 2023 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 61.06 + 61.50 – 99.58
= 22.98
The cash conversion cycle of Matador Resources Co has shown fluctuations over the past eight quarters. In Q4 2023, the company's cash conversion cycle was 67.81 days, indicating that it took approximately 67.81 days for the company to convert its investments in inventory and accounts receivable into cash. This was a decrease from the previous quarter (Q3 2023) where the cash conversion cycle was 76.14 days, suggesting an improvement in efficiency.
Comparing Q4 2023 to the same quarter in the previous year (Q4 2022), the cash conversion cycle increased from 57.01 days to 67.81 days, reflecting a lengthening of the time it takes for the company to convert its operating assets into cash.
Overall, the trend in the cash conversion cycle for Matador Resources Co has been somewhat volatile, with fluctuations seen from quarter to quarter. It is important for the company to monitor and manage its cash conversion cycle effectively to ensure optimal working capital management and operational efficiency.
Peer comparison
Dec 31, 2023