Masco Corporation (MAS)
Working capital turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 7,748,000 | 7,861,000 | 8,568,000 | 7,915,000 | 7,636,000 |
| Total current assets | US$ in thousands | 2,730,000 | 2,856,000 | 2,946,000 | 3,422,000 | 3,489,000 |
| Total current liabilities | US$ in thousands | 1,560,000 | 1,695,000 | 1,889,000 | 1,939,000 | 1,934,000 |
| Working capital turnover | 6.62 | 6.77 | 8.11 | 5.34 | 4.91 |
December 31, 2024 calculation
Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $7,748,000K ÷ ($2,730,000K – $1,560,000K)
= 6.62
Masco Corporation's working capital turnover has shown a positive trend over the years, indicating efficiency in utilizing its working capital resources. The ratio has increased from 4.91 in December 31, 2020, to 6.62 in December 31, 2024, demonstrating an improvement in the company's ability to generate sales relative to its investment in working capital.
The peak in working capital turnover was observed in December 31, 2022, reaching a value of 8.11, suggesting a significant enhancement in operational efficiency during that period. Although there was a slight decline in the ratio in the following years, Masco Corporation has overall maintained a healthy level of working capital turnover, showcasing effective management of its current assets and liabilities to support revenue generation.
This consistent improvement in working capital turnover reflects positively on Masco Corporation's liquidity management and operational performance, indicating a strong ability to convert working capital into sales, which is essential for sustainable business growth and profitability.
Peer comparison
Dec 31, 2024