Masco Corporation (MAS)
Current ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Total current assets | US$ in thousands | 2,856,000 | 2,946,000 | 3,422,000 | 3,489,000 | 2,711,000 |
| Total current liabilities | US$ in thousands | 1,695,000 | 1,889,000 | 1,939,000 | 1,934,000 | 1,548,000 |
| Current ratio | 1.68 | 1.56 | 1.76 | 1.80 | 1.75 |
December 31, 2023 calculation
Current ratio = Total current assets ÷ Total current liabilities
= $2,856,000K ÷ $1,695,000K
= 1.68
Masco Corp.'s current ratio has fluctuated over the past five years, ranging from 1.56 to 1.80. The current ratio measures the company's ability to cover its short-term liabilities with its current assets. A current ratio above 1 indicates that the company has more current assets than current liabilities, which is generally considered a positive sign of financial health and liquidity.
In 2023, Masco Corp.'s current ratio stands at 1.68, showing an improvement from the previous year. This suggests that the company's current assets have increased relative to its current liabilities, enhancing its ability to meet short-term obligations. However, it is important to note that a very high current ratio may indicate that the company is not efficiently utilizing its current assets to generate revenue or may have excess inventory that could become obsolete.
Overall, Masco Corp.'s current ratio demonstrates a generally healthy liquidity position over the past five years, with fluctuations reflecting changes in the company's current asset and liability composition. Additional financial analysis and context would be needed to fully assess the company's short-term solvency and operational efficiency.
Peer comparison
Dec 31, 2023