Masco Corporation (MAS)
Activity ratios
Short-term
Turnover ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 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 |
| Receivables turnover | 7.46 | 6.80 | 5.94 | 5.96 | 7.21 | 6.34 | 5.92 | 6.28 | 7.46 | 6.25 | 5.80 | 5.43 | 6.62 | 5.98 | 5.72 | 5.60 | 6.21 | 5.43 | 5.21 | 6.41 |
| Payables turnover | 8.23 | 7.50 | 7.06 | 7.29 | 7.87 | 8.02 | 7.34 | 7.94 | 8.48 | 7.18 | 6.64 | 6.55 | 6.75 | 6.51 | 6.35 | 6.67 | 6.63 | 5.48 | 6.14 | 7.59 |
| Working capital turnover | 6.60 | 5.82 | 6.23 | 6.46 | 6.77 | 6.06 | 6.46 | 7.38 | 8.11 | 8.00 | 9.33 | 6.32 | 5.22 | 5.22 | 5.22 | 5.01 | 4.55 | 3.91 | 6.36 | 5.90 |
Masco Corporation's inventory turnover has shown a declining trend from 7.46 in March 2020 to 6.93 in December 2024. This indicates that the company is taking longer to sell its inventory, which may lead to increased carrying costs and potential obsolescence.
On the other hand, the receivables turnover ratio has displayed fluctuations over the same period, ranging from 5.21 in June 2020 to 7.46 in December 2024. This suggests that Masco has been efficient in collecting outstanding receivables, with a notable improvement in recent periods.
In terms of payables turnover, Masco's performance has been fairly consistent, with the ratio fluctuating slightly between 5.48 and 8.23 during the period. A higher payables turnover generally indicates that the company is managing its payables well and taking advantage of credit terms from suppliers.
The working capital turnover ratio has exhibited a varying trend, indicating the efficiency with which Masco utilizes its working capital to generate sales revenue. The ratio has shown peaks and valleys, reflecting changes in the company's working capital management strategies over time.
Overall, Masco Corporation's activity ratios suggest a mixed performance in managing its inventory, receivables, payables, and working capital. Continuous monitoring and potential adjustments may be necessary to optimize these ratios and improve the company's operational efficiency.
Average number of days
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 52.70 | 56.39 | 59.11 | 58.95 | 56.41 | 56.37 | 59.40 | 60.21 | 60.69 | 64.92 | 65.95 | 67.07 | 62.96 | 59.90 | 57.46 | 56.09 | 54.01 | 57.89 | 52.80 | 48.90 |
| Days of sales outstanding (DSO) | days | 48.92 | 53.64 | 61.47 | 61.23 | 50.61 | 57.55 | 61.62 | 58.16 | 48.95 | 58.36 | 62.90 | 67.19 | 55.17 | 61.00 | 63.86 | 65.22 | 58.73 | 67.24 | 70.10 | 56.98 |
| Number of days of payables | days | 44.33 | 48.65 | 51.67 | 50.04 | 46.36 | 45.48 | 49.74 | 45.96 | 43.06 | 50.81 | 54.94 | 55.76 | 54.11 | 56.11 | 57.46 | 54.73 | 55.06 | 66.60 | 59.48 | 48.06 |
Masco Corporation's activity ratios provide insights into the efficiency of its inventory management, accounts receivable collection, and payment to suppliers.
1. Days of Inventory on Hand (DOH): The DOH has shown a fluctuating trend over the period under review, ranging from 48.90 days to 67.07 days. The company's inventory turnover has varied, indicating changes in the speed at which it sells its products. A general upward trend in DOH may suggest that Masco is holding onto inventory for a longer period, which could tie up funds and indicate potential inefficiencies in inventory management.
2. Days of Sales Outstanding (DSO): The DSO metric reveals the average number of days it takes for Masco to collect payment after a sale is made. The DSO has ranged from 48.92 days to 70.10 days, reflecting variability in the company's collection efficiency. Lower DSO values signify faster cash conversion, while higher values suggest delays in receivables collection.
3. Number of Days of Payables: Masco's payables period, ranging from 43.06 days to 66.60 days, shows the average time it takes for the company to pay its suppliers. A longer payables period may indicate that Masco is taking more time to settle its debts, potentially leading to better cash flow management. Conversely, a decreasing trend in payables days may suggest tightening supplier credit terms.
In summary, monitoring these activity ratios can help investors and analysts assess Masco Corporation's operational effectiveness, efficiency in working capital management, and potential impact on cash flows.
Long-term
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Fixed asset turnover | 7.18 | 6.97 | 6.99 | 7.03 | 7.01 | 7.33 | 7.64 | 8.19 | 8.79 | 9.22 | 9.41 | 9.15 | 8.65 | 8.97 | 8.62 | 8.17 | 7.79 | 7.80 | 7.91 | 8.50 |
| Total asset turnover | 1.54 | 1.48 | 1.45 | 1.46 | 1.47 | 1.47 | 1.53 | 1.54 | 1.65 | 1.54 | 1.52 | 1.47 | 1.39 | 1.42 | 1.43 | 1.31 | 1.22 | 1.23 | 1.28 | 1.51 |
Masco Corporation's long-term activity ratios indicate the company's efficiency in utilizing its fixed assets and total assets to generate revenue.
The Fixed Asset Turnover ratio measures how well the company is using its fixed assets to generate sales. Masco's Fixed Asset Turnover ratio has shown a fluctuating trend over the years, starting at 8.50 in March 2020, peaking at 9.41 in June 2022, and declining to 7.18 by December 2024. The overall trend suggests that Masco has been efficient in utilizing its fixed assets to generate sales, although there have been periods of variability.
The Total Asset Turnover ratio measures how efficiently the company is using all of its assets to generate revenue. Masco's Total Asset Turnover ratio has also shown fluctuations but generally depicts a decreasing trend from 1.51 in March 2020 to 1.54 in December 2024. This indicates that despite fluctuations, Masco has been effective in generating revenue relative to its total asset base.
Overall, Masco Corporation's long-term activity ratios reflect its ability to efficiently utilize both fixed assets and total assets to generate sales revenue, with some variations over the years. Continued monitoring and analysis of these ratios can provide insights into the company's operational efficiency and asset utilization strategies.