Masco Corporation (MAS)

Short-term

Turnover ratios

Masco Corporation's inventory turnover has shown a slight decrease over the past five years, from 6.76 in 2020 to 6.93 in 2024. This indicates that the company is selling its inventory less efficiently in recent years.

On the other hand, the receivables turnover has been relatively stable, fluctuating within a narrow range from 6.71 in 2020 to 7.49 in 2024. This suggests that Masco Corporation is collecting its receivables effectively.

The payables turnover for Masco Corporation has shown an increasing trend, from 6.63 in 2020 to 8.23 in 2024. This indicates that the company is taking longer to pay its suppliers, which could be beneficial in managing cash flow.

In terms of working capital turnover, Masco Corporation's efficiency has fluctuated over the years, reaching a peak of 8.11 in 2022. A higher working capital turnover ratio indicates that the company is generating more revenue per dollar of working capital.

Overall, Masco Corporation's activity ratios show a mixed performance, with some efficiency improvements in payables turnover and working capital turnover, but a slight decline in inventory turnover.

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Average number of days

Masco Corporation's activity ratios reflect its efficiency in managing inventory, collecting receivables, and paying its suppliers.

1. Days of Inventory on Hand (DOH):
- Masco's DOH has ranged from 52.70 days to 62.96 days over the five years. A lower DOH is generally better as it indicates that Masco is efficiently managing its inventory levels. Masco's inventory management has improved from 2021 to 2024, with the DOH decreasing over this period.

2. Days of Sales Outstanding (DSO):
- The DSO for Masco has fluctuated between 48.76 days and 54.40 days. A lower DSO is preferable as it signifies that Masco is efficient in collecting payments from customers. The decreasing trend from 2021 to 2024 shows that Masco has been improving its receivables collection process over the years.

3. Number of Days of Payables:
- Masco's number of days of payables ranged from 43.06 days to 55.06 days across the five years. A higher number of days of payables indicates that Masco takes longer to pay its suppliers, which may be beneficial for cash flow management. The decreasing trend from 2021 to 2024 suggests that Masco has been managing its payables more efficiently over the years.

In summary, Masco Corporation has shown improvements in managing its inventory, collecting receivables, and paying its suppliers more efficiently over the years, as evidenced by the trends in its activity ratios.

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Long-term

Masco Corporation's long-term activity ratios provide insights into how efficiently the company utilizes its assets to generate sales.

1. Fixed asset turnover:
- The fixed asset turnover ratio indicates the company's ability to generate sales revenue relative to its investment in fixed assets.
- Masco Corporation's fixed asset turnover ratio has generally been stable, ranging from 7.01 to 8.83 over the analyzed period.
- A higher fixed asset turnover ratio suggests that Masco is effectively using its fixed assets to generate sales, which can indicate operational efficiency.

2. Total asset turnover:
- The total asset turnover ratio measures how efficiently Masco generates sales relative to its total assets.
- Masco Corporation's total asset turnover ratio has shown variability over the years, fluctuating between 1.32 and 1.65.
- An increasing total asset turnover ratio indicates that the company is generating more sales per dollar of assets, which can be a positive sign of operational efficiency.

Overall, Masco Corporation's long-term activity ratios suggest that the company is effectively managing its assets to generate sales, with both fixed asset turnover and total asset turnover showing relatively stable or improving trends over the analyzed period.