Masco Corporation (MAS)
Cash conversion cycle
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 52.70 | 56.41 | 60.69 | 62.96 | 54.01 |
| Days of sales outstanding (DSO) | days | 48.76 | 50.61 | 48.95 | 54.00 | 54.40 |
| Number of days of payables | days | 44.33 | 46.36 | 43.06 | 54.11 | 55.06 |
| Cash conversion cycle | days | 57.13 | 60.66 | 66.57 | 62.86 | 53.35 |
December 31, 2024 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 52.70 + 48.76 – 44.33
= 57.13
The cash conversion cycle for Masco Corporation has shown a slight increase over the past five years. In December 2020, the cash conversion cycle was 53.35 days, which increased to 62.86 days by December 2021. Subsequently, it further rose to 66.57 days by December 2022. However, there was a slight improvement in efficiency by December 2023, with the cycle decreasing to 60.66 days. By December 2024, the cash conversion cycle improved further to 57.13 days.
Overall, Masco Corporation's cash conversion cycle trended upwards in the initial years but then showed signs of improvement in later years. It is important to monitor this metric closely as it indicates the company's ability to convert its investments in inventory and receivables into cash, which is crucial for its liquidity and financial health.
Peer comparison
Dec 31, 2024