MasterBrand Inc. (MBC)
Working capital turnover
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | ||
|---|---|---|---|---|---|
| Revenue (ttm) | US$ in thousands | 2,700,400 | 2,709,800 | 2,669,000 | 2,687,600 |
| Total current assets | US$ in thousands | 650,700 | 686,900 | 745,300 | 702,500 |
| Total current liabilities | US$ in thousands | 395,400 | 378,400 | 332,200 | 340,400 |
| Working capital turnover | 10.58 | 8.78 | 6.46 | 7.42 |
December 31, 2024 calculation
Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $2,700,400K ÷ ($650,700K – $395,400K)
= 10.58
MasterBrand Inc.'s working capital turnover has shown a positive trend over the four quarters of the 2024 fiscal year. In March 2024, the working capital turnover ratio was 7.42, indicating that the company generated $7.42 in revenue for every dollar of working capital invested. By June 2024, the ratio decreased slightly to 6.46, suggesting a temporary slowdown in efficient utilization of working capital.
However, the following quarters witnessed a significant improvement in efficiency, with the working capital turnover ratio reaching 8.78 in September 2024 and surging to 10.58 by December 2024. These higher ratios indicate that MasterBrand Inc. was able to generate more revenue per unit of working capital, reflecting improved management of its current assets and liabilities.
Overall, the uptrend in working capital turnover signifies that the company has been effectively utilizing its working capital to generate sales throughout the fiscal year, which may indicate efficient operations or effective working capital management strategies.
Peer comparison
Dec 31, 2024