Masco Corporation (MAS)
Cash conversion cycle
| 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 |
| Cash conversion cycle | days | 57.29 | 61.38 | 68.91 | 70.14 | 60.66 | 68.44 | 71.28 | 72.40 | 66.57 | 72.47 | 73.91 | 78.51 | 64.03 | 64.79 | 63.86 | 66.58 | 57.69 | 58.53 | 63.41 | 57.82 |
December 31, 2024 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 52.70 + 48.92 – 44.33
= 57.29
The cash conversion cycle of Masco Corporation, a measure of how efficiently the company manages its working capital, has shown some fluctuations over the periods analyzed. The cash conversion cycle can be calculated as the sum of days inventory outstanding, days sales outstanding, and days payables outstanding.
From March 31, 2020, to June 30, 2022, the cash conversion cycle ranged from a low of 57.82 days to a high of 78.51 days. A shorter cash conversion cycle indicates that the company is able to convert its inventory into cash more quickly, leading to improved liquidity and potentially higher profitability.
In the later periods, from June 30, 2022, to December 31, 2024, the cash conversion cycle decreased from 73.91 days to 57.29 days. This decrease indicates that the company may have improved its working capital management, possibly by optimizing inventory levels, accelerating collections from customers, or extending payment terms to suppliers.
Overall, a decreasing trend in the cash conversion cycle is generally positive as it implies that Masco Corporation is becoming more efficient in managing its cash flows and working capital, which can lead to improved financial performance and stability. However, it is important to monitor this metric regularly to ensure that operational efficiency is being maintained over time.
Peer comparison
Dec 31, 2024