Masco Corporation (MAS)
Working capital turnover
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (ttm) | US$ in thousands | 7,723,000 | 7,839,000 | 7,802,000 | 7,809,000 | 7,861,000 | 7,896,000 | 8,121,000 | 8,341,000 | 8,568,000 | 8,318,000 | 8,321,000 | 8,159,000 | 7,747,000 | 7,958,000 | 7,728,000 | 7,303,000 | 7,072,000 | 6,851,000 | 6,811,000 | 7,316,000 |
| Total current assets | US$ in thousands | 2,730,000 | 2,965,000 | 2,898,000 | 2,850,000 | 2,856,000 | 2,964,000 | 3,007,000 | 3,148,000 | 2,946,000 | 3,264,000 | 3,359,000 | 3,428,000 | 3,422,000 | 3,404,000 | 3,259,000 | 3,206,000 | 3,489,000 | 3,487,000 | 3,225,000 | 2,745,000 |
| Total current liabilities | US$ in thousands | 1,560,000 | 1,618,000 | 1,645,000 | 1,641,000 | 1,695,000 | 1,662,000 | 1,749,000 | 2,018,000 | 1,889,000 | 2,224,000 | 2,467,000 | 2,136,000 | 1,939,000 | 1,879,000 | 1,778,000 | 1,748,000 | 1,934,000 | 1,737,000 | 2,154,000 | 1,504,000 |
| 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 |
December 31, 2024 calculation
Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $7,723,000K ÷ ($2,730,000K – $1,560,000K)
= 6.60
Masco Corporation's working capital turnover has shown some fluctuations over the reported periods. The working capital turnover ratio measures how efficiently a company is utilizing its working capital to generate revenue.
From March 31, 2020, to June 30, 2020, there was a significant increase in the working capital turnover ratio from 5.90 to 6.36, indicating improved efficiency in utilizing working capital to support revenue generation. However, the ratio decreased to 3.91 by September 30, 2020, before gradually recovering to reach 5.22 by June 30, 2021.
Subsequently, from June 30, 2021, to December 31, 2021, the working capital turnover remained stable at 5.22. A notable improvement was seen by March 31, 2022, when the ratio increased to 6.32, suggesting increased efficiency in utilizing working capital to support sales.
The ratio peaked at 9.33 on June 30, 2022, indicating a significant improvement in utilizing working capital efficiently to generate revenue. However, by September 30, 2022, it decreased to 8.00, and by December 31, 2022, it further decreased to 8.11.
The ratio fluctuated further in the following periods but generally maintained a range between 6 to 7. The efficiency in working capital turnover can be influenced by various factors such as changes in sales, inventory management, and accounts receivable collection.
Overall, Masco Corporation's working capital turnover has shown some variability but generally demonstrates a trend towards efficient utilization of working capital to support revenue generation, with occasional fluctuations that may require further analysis to understand the underlying reasons. Monitoring this ratio can provide insights into the company's operational efficiency and financial performance.
Peer comparison
Dec 31, 2024