Matador Resources Company (MTDR)
Cash conversion cycle
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 44.82 | 48.46 | 53.52 | 56.55 | 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 |
| Days of sales outstanding (DSO) | days | 68.18 | 65.64 | 59.43 | 63.57 | 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 |
| Number of days of payables | days | 171.42 | 162.23 | 135.39 | 172.53 | 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 |
| Cash conversion cycle | days | -58.42 | -48.13 | -22.44 | -52.41 | 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 |
December 31, 2024 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 44.82 + 68.18 – 171.42
= -58.42
The cash conversion cycle of Matador Resources Company, as shown in the provided data, portrays the efficiency of the company in managing its working capital. A positive cash conversion cycle indicates that the company takes time to turn its inventory into cash, while a negative cycle suggests that Matador Resources Company is able to generate cash quickly.
From the data provided, we can observe the following trends in Matador Resources Company's cash conversion cycle:
- The company's cash conversion cycle started at around 20.86 days in March 2020 and gradually increased over time, reaching a peak of 77.83 days in March 2021.
- Subsequently, there was a significant decrease in the cash conversion cycle, with negative values recorded from September 2021 to December 2024.
- Negative values in the cash conversion cycle indicate that Matador Resources Company was able to convert its investments in inventory and receivables into cash at a faster rate during these periods.
Overall, the fluctuating trends in the cash conversion cycle of Matador Resources Company suggest varying efficiency levels in managing its working capital over the analyzed periods. The negative values in the latter part of the data indicate improved efficiency in converting investments into cash, which could be a positive sign for the company's liquidity and operational performance.
Peer comparison
Dec 31, 2024