Masco Corporation (MAS)
Inventory turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 6,497,000 | 6,613,000 | 7,434,000 | 7,049,000 | 5,920,000 |
| Inventory | US$ in thousands | 938,000 | 1,022,000 | 1,236,000 | 1,216,000 | 876,000 |
| Inventory turnover | 6.93 | 6.47 | 6.01 | 5.80 | 6.76 |
December 31, 2024 calculation
Inventory turnover = Cost of revenue ÷ Inventory
= $6,497,000K ÷ $938,000K
= 6.93
Masco Corporation's inventory turnover has shown some fluctuation over the past five years. The inventory turnover ratio measures how efficiently the company manages its inventory by indicating how many times during a period its inventory is sold and replaced.
In 2020, Masco Corporation had an inventory turnover ratio of 6.76, indicating that its inventory was turned over approximately 6.76 times during the year. However, by the end of 2021, this ratio had decreased to 5.80, suggesting that the company's inventory turnover had slowed down.
In 2022, Masco Corporation's inventory turnover improved slightly to 6.01, indicating a better utilization of inventory compared to the previous year. This trend continued into 2023, with the ratio further increasing to 6.47, showing improved efficiency in managing and selling inventory.
By the end of 2024, Masco Corporation's inventory turnover ratio reached 6.93, which is the highest ratio in the given period. This suggests that the company was able to effectively turn over its inventory almost 7 times during the year, reflecting strong inventory management practices.
Overall, Masco Corporation's inventory turnover ratio has shown variability over the years, with improvements in some years and slight declines in others. It is important for the company to continue monitoring and optimizing its inventory turnover to ensure efficient operations and sustainable growth.
Peer comparison
Dec 31, 2024