Masco Corporation (MAS)
Inventory turnover
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cost of revenue (ttm) | US$ in thousands | 6,497,000 | 6,557,000 | 6,527,000 | 6,557,000 | 6,613,000 | 6,773,000 | 7,030,000 | 7,250,000 | 7,434,000 | 7,528,000 | 7,494,000 | 7,292,000 | 7,049,000 | 6,746,000 | 6,486,000 | 6,169,000 | 5,920,000 | 5,113,000 | 5,185,000 | 5,643,000 |
| Inventory | US$ in thousands | 938,000 | 1,013,000 | 1,057,000 | 1,059,000 | 1,022,000 | 1,046,000 | 1,144,000 | 1,196,000 | 1,236,000 | 1,339,000 | 1,354,000 | 1,340,000 | 1,216,000 | 1,107,000 | 1,021,000 | 948,000 | 876,000 | 811,000 | 750,000 | 756,000 |
| Inventory turnover | 6.93 | 6.47 | 6.18 | 6.19 | 6.47 | 6.48 | 6.15 | 6.06 | 6.01 | 5.62 | 5.53 | 5.44 | 5.80 | 6.09 | 6.35 | 6.51 | 6.76 | 6.30 | 6.91 | 7.46 |
December 31, 2024 calculation
Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $6,497,000K ÷ $938,000K
= 6.93
Masco Corporation's inventory turnover ratio has shown fluctuations over the past few years. The inventory turnover ratio measures how efficiently the company is managing its inventory by indicating how many times during a period the inventory is sold and replaced.
From March 31, 2020, to December 31, 2022, Masco's inventory turnover decreased from 7.46 to 6.01, indicating a decline in the rate at which the company was selling and replacing its inventory. This trend suggests potentially inefficient inventory management or a slowdown in sales during this period.
However, from March 31, 2023, to December 31, 2024, Masco's inventory turnover ratio improved gradually from 6.06 to 6.93. This increase signifies a better utilization of inventory or an increase in sales turnover, which can be a positive indicator of operational efficiency and liquidity.
Overall, Masco Corporation's inventory turnover ratio has shown variability, with both decreases and increases during the period under review. It is crucial for the company to monitor this ratio regularly to ensure optimal inventory management and operational efficiency.
Peer comparison
Dec 31, 2024
Dec 31, 2024