Masco Corporation (MAS)
Fixed asset turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 7,748,000 | 7,861,000 | 8,568,000 | 7,915,000 | 7,636,000 |
| Property, plant and equipment | US$ in thousands | 1,075,000 | 1,121,000 | 975,000 | 896,000 | 908,000 |
| Fixed asset turnover | 7.21 | 7.01 | 8.79 | 8.83 | 8.41 |
December 31, 2024 calculation
Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $7,748,000K ÷ $1,075,000K
= 7.21
Masco Corporation's fixed asset turnover ratio has shown a relatively stable performance over the past five years. The company's fixed asset turnover ratio stood at 8.41 in December 2020 and experienced a slight increase to 8.83 by December 2021. Subsequently, there was a marginal decrease to 8.79 by the end of 2022.
However, a more significant decline was observed in the fixed asset turnover ratio for Masco Corporation in the following years. The ratio dropped to 7.01 by December 2023 and further to 7.21 by December 2024. This suggests that the company's ability to generate sales revenue from its fixed assets has decreased, indicating a less efficient utilization of these assets in generating revenue.
A decreasing trend in fixed asset turnover may point towards potential inefficiencies in asset utilization, which could be caused by various factors such as suboptimal production capacity, underutilization of assets, or declining sales. It is essential for Masco Corporation to closely monitor its fixed asset turnover ratio and evaluate strategies to improve asset utilization efficiency to enhance overall operational performance.
In summary, Masco Corporation's fixed asset turnover has fluctuated over the past five years, with a general declining trend. Management should focus on improving asset utilization to drive better financial performance and operational efficiency in the future.
Peer comparison
Dec 31, 2024