Masco Corporation (MAS)
Cash conversion cycle
| 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 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 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 | 45.99 | 48.44 | 49.89 | 51.33 |
| Days of sales outstanding (DSO) | days | 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 | 47.58 | 53.37 | 63.26 | 58.60 |
| Number of days of payables | days | 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 | 42.51 | 46.08 | 52.35 | 48.44 |
| Cash conversion cycle | days | 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 | 51.06 | 55.73 | 60.81 | 61.49 |
December 31, 2023 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 56.41 + 50.61 – 46.36
= 60.66
The cash conversion cycle of Masco Corp. has shown variability over the past eight quarters, ranging from a low of 62.88 days in Q4 2023 to a high of 78.08 days in Q1 2022. The cycle represents the time it takes for Masco to convert its investments in inventory and other resources into cash inflows from sales. A shorter cash conversion cycle indicates that the company is efficiently managing its working capital and converting inventory into cash quickly.
In the recent quarters, Masco has generally seen improvements in its cash conversion cycle, with a decline from 75.22 days in Q1 2023 to 62.88 days in Q4 2023. This trend suggests that the company has been effective in managing its inventory levels, collecting receivables, and optimizing its payables in a way that enhances liquidity and efficiency.
However, it is worth noting that Masco's cash conversion cycle has fluctuated, indicating potential challenges in managing working capital efficiently. Monitoring this metric over time can provide insights into the company's operational effectiveness, financial health, and overall liquidity management.
Peer comparison
Dec 31, 2023