Masco Corporation (MAS)
Working capital turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 7,861,000 | 8,568,000 | 7,915,000 | 7,636,000 | 6,846,000 |
| Total current assets | US$ in thousands | 2,856,000 | 2,946,000 | 3,422,000 | 3,489,000 | 2,711,000 |
| Total current liabilities | US$ in thousands | 1,695,000 | 1,889,000 | 1,939,000 | 1,934,000 | 1,548,000 |
| Working capital turnover | 6.77 | 8.11 | 5.34 | 4.91 | 5.89 |
December 31, 2023 calculation
Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $7,861,000K ÷ ($2,856,000K – $1,695,000K)
= 6.77
The working capital turnover ratio of Masco Corp. has fluctuated over the past five years. The ratio measures how efficiently the company is utilizing its working capital to generate sales.
In 2023, Masco Corp. had a working capital turnover ratio of 6.86, which indicates that the company is generating $6.86 of sales for every dollar of working capital invested. This represents a decrease compared to the previous year, suggesting a slightly less efficient use of working capital.
In 2022, the company achieved a higher working capital turnover ratio of 8.21, signaling a more effective utilization of working capital to generate sales. This was an improvement from the prior year, indicating stronger operational efficiency.
In 2021, the ratio decreased to 5.65, reflecting a decline in the efficiency of working capital utilization compared to the previous year. This suggests that the company may have been less effective in converting working capital into sales during this period.
In 2020 and 2019, Masco Corp. had working capital turnover ratios of 4.62 and 5.77, respectively. These figures indicate variations in the efficiency of working capital management over those years, with 2020 showing lower efficiency and 2019 demonstrating a slightly better performance in converting working capital into sales.
Overall, Masco Corp. has experienced fluctuations in its working capital turnover ratio over the past five years, reflecting changes in the company's ability to generate sales efficiently using its working capital. The company should continue to monitor and manage its working capital effectively to sustain operational efficiency and optimize financial performance.
Peer comparison
Dec 31, 2023