Masco Corporation (MAS)
Cash ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 634,000 | 452,000 | 926,000 | 1,326,000 | 697,000 |
| Short-term investments | US$ in thousands | — | 452,000 | 926,000 | 1,326,000 | — |
| Total current liabilities | US$ in thousands | 1,695,000 | 1,889,000 | 1,939,000 | 1,934,000 | 1,548,000 |
| Cash ratio | 0.37 | 0.48 | 0.96 | 1.37 | 0.45 |
December 31, 2023 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($634,000K
+ $—K)
÷ $1,695,000K
= 0.37
The cash ratio measures a company's ability to cover its short-term liabilities using its cash and cash equivalents. Masco Corp.'s cash ratio has fluctuated over the past five years, indicating changes in its liquidity position.
In 2023, Masco Corp.'s cash ratio was 0.44, showing an improvement from the previous year's ratio of 0.30. This suggests that Masco had $0.44 in cash and cash equivalents for every $1 of current liabilities, signaling a stronger ability to meet its short-term obligations.
Comparing to 2021 and 2020, where the cash ratio was 0.53 and 0.76 respectively, the current ratio for 2023 indicates a lower liquidity position. However, it is important to note that Masco Corp. had a higher cash ratio in 2023 compared to 2019 when it was 0.51.
Overall, Masco Corp.'s cash ratio has shown variability over the last five years, suggesting fluctuations in its ability to cover short-term liabilities with cash reserves. Further analysis of the company's cash management and liquidity should be conducted to understand the factors driving these fluctuations and assess the implications for its financial health.
Peer comparison
Dec 31, 2023