Masco Corporation (MAS)
Payables turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 6,613,000 | 7,434,000 | 7,049,000 | 5,920,000 | 5,642,000 |
| Payables | US$ in thousands | 840,000 | 877,000 | 1,045,000 | 893,000 | 697,000 |
| Payables turnover | 7.87 | 8.48 | 6.75 | 6.63 | 8.09 |
December 31, 2023 calculation
Payables turnover = Cost of revenue ÷ Payables
= $6,613,000K ÷ $840,000K
= 7.87
The payables turnover ratio for Masco Corp. has shown some fluctuations over the past five years. The ratio indicates how many times the company pays off its accounts payable balances during a specific period.
The payables turnover ratio was highest in 2022 at 6.80, indicating that the company was able to efficiently manage its payables by paying them off more frequently during that year. This might suggest strong liquidity or effective cash management.
In 2023, the payables turnover ratio decreased to 6.11. While this is still a relatively high turnover ratio, the decline suggests that Masco Corp. took slightly longer to pay off its accounts payable compared to the prior year.
In 2021, the ratio was lower at 5.27, indicating a decrease in efficiency in paying off its payables compared to the previous years. This might suggest that the company took longer to pay its suppliers during that period.
Overall, Masco Corp. has generally maintained a healthy payables turnover ratio above 5 over the past five years, except for 2021 where it dipped slightly. This indicates that the company has been efficient in managing its payables and maintaining good relationships with its suppliers. It would be important for Masco Corp. to monitor this ratio closely to ensure effective working capital management and maintain positive supplier relationships.
Peer comparison
Dec 31, 2023