Masco Corporation (MAS)
Payables 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 |
| Payables | US$ in thousands | 789,000 | 840,000 | 877,000 | 1,045,000 | 893,000 |
| Payables turnover | 8.23 | 7.87 | 8.48 | 6.75 | 6.63 |
December 31, 2024 calculation
Payables turnover = Cost of revenue ÷ Payables
= $6,497,000K ÷ $789,000K
= 8.23
The payables turnover ratio for Masco Corporation has shown a positive trend over the years, increasing from 6.63 in December 31, 2020, to 8.23 in December 31, 2024. This indicates the company's ability to efficiently manage its accounts payable by paying off its obligations more frequently in relation to its purchasing activities. The improvement in the payables turnover ratio suggests that Masco Corporation is managing its trade credit effectively, potentially negotiating better terms with suppliers or improving internal processes related to payables. Overall, this trend demonstrates sound financial management and effective working capital utilization within the company.
Peer comparison
Dec 31, 2024