Masco Corporation (MAS)

Liquidity ratios

	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
Current ratio	1.75	1.83	1.76	1.74	1.68	1.78	1.72	1.56	1.56	1.47	1.36	1.60	1.76	1.81	1.83	1.83	1.80	2.01	1.50	1.83
Quick ratio	1.07	1.11	1.04	1.02	1.02	1.09	1.00	0.91	1.09	1.02	0.94	1.15	1.56	1.62	1.63	1.71	1.96	2.25	1.11	1.27
Cash ratio	0.41	0.40	0.24	0.22	0.37	0.34	0.22	0.25	0.48	0.42	0.36	0.45	0.96	0.91	0.87	0.96	1.37	1.53	0.51	0.51

Masco Corporation's liquidity ratios have shown some fluctuations over the analyzed periods. The current ratio, which measures the company's ability to cover its short-term obligations with its current assets, ranged between 1.36 to 2.01, reflecting fluctuations in the company's liquidity position. Despite some volatility, the current ratio generally stayed above 1, indicating Masco Corporation's ability to meet its short-term obligations.

The quick ratio, a more stringent measure of liquidity that excludes inventory from current assets, showed a range of 0.91 to 2.25. This ratio also exhibited some variability, but generally remained above 1, suggesting Masco Corporation's ability to cover its short-term liabilities without relying on inventory.

The cash ratio, which reflects the company's ability to cover its current liabilities with its cash and cash equivalents, ranged from 0.22 to 1.53. This ratio also displayed fluctuations, indicating some variability in the company's cash position over the analyzed periods.

Overall, while Masco Corporation's liquidity ratios showed some variability, the company generally maintained a solid liquidity position, with its current assets able to cover its short-term obligations. However, sustained monitoring of liquidity trends is advisable to ensure continued financial stability.

Additional liquidity measure

		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
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

The cash conversion cycle is a key metric that reflects how efficiently a company manages its working capital by measuring the time it takes for a company to convert its investments in inventory and accounts receivable into cash flows from sales.

Analyzing Masco Corporation's cash conversion cycle data from March 31, 2020, to December 31, 2024, we observe fluctuations in the number of days it takes for Masco to convert its resources into cash. The cycle ranged from a low of 57.29 days on December 31, 2024, to a high of 78.51 days on March 31, 2022.

A shorter cash conversion cycle is generally favorable, indicating that the company is efficient in managing its working capital. Masco Corporation has shown variability in its cash conversion cycle over the period, with fluctuations indicating changes in its effectiveness in managing its inventory, receivables, and payables.

It is important for Masco to continuously monitor and manage its cash conversion cycle to ensure optimal working capital management. A longer cash conversion cycle may tie up cash and hinder liquidity, while a shorter cycle can enhance the company's financial health and operational efficiency. By analyzing trends and identifying opportunities for improvement, Masco can strive for improved liquidity and profitability.