Masco Corporation (MAS)

Liquidity ratios

	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
Current ratio	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	1.75	1.46	1.46	1.43
Quick ratio	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	1.09	0.87	0.90	0.85
Cash ratio	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	0.45	0.25	0.17	0.16

Masco Corp.'s liquidity ratios show a generally stable and healthy trend over the past eight quarters. The current ratio, which measures the company's ability to cover its short-term liabilities with its current assets, has fluctuated within a relatively narrow range between 1.56 and 1.78. This indicates that Masco Corp. has been able to maintain a sufficient level of current assets to meet its short-term obligations.

The quick ratio, a more stringent measure of liquidity that excludes inventory from current assets, has also demonstrated consistency, hovering between 0.87 and 1.15. This suggests that Masco Corp. has a reasonable ability to cover its short-term liabilities without relying on selling inventory.

Furthermore, the cash ratio, which assesses the company's ability to cover its short-term liabilities with cash and cash equivalents, has shown a similar pattern of stability within the range of 0.23 to 0.44. This indicates that Masco Corp. maintains a level of cash reserves that can cover a portion of its short-term obligations.

Overall, Masco Corp.'s liquidity ratios reflect a prudent management of its current assets and a consistent ability to meet its short-term financial commitments. It is important for the company to continue monitoring these ratios to ensure ongoing liquidity and financial stability.

Additional liquidity measure

		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
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

The cash conversion cycle of Masco Corp. has shown some fluctuation in recent quarters. In Q4 2023, the company's cash conversion cycle was 62.88 days, which decreased from the previous quarter's 70.71 days. This indicates that Masco was able to convert its net investment in working capital into cash quicker in Q4 2023 compared to Q3 2023.

However, looking back at the same quarter of the previous year, Q4 2022, Masco's cash conversion cycle was similar at 70.28 days. This suggests that the company's efficiency in managing its working capital and cash flow has improved year over year.

Overall, the downward trend in the cash conversion cycle from Q3 to Q4 2023 is a positive sign as it reflects improved efficiency in converting resources into cash. However, it would be beneficial for Masco to continue monitoring and managing its working capital effectively to sustain this improvement and optimize its cash conversion cycle further.