MasTec Inc (MTZ)
Activity ratios
Short-term
Turnover ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Inventory turnover | 99.46 | 103.65 | 72.78 | 73.50 | 58.80 |
| Receivables turnover | — | — | — | — | — |
| Payables turnover | — | — | — | — | — |
| Working capital turnover | 18.85 | 10.55 | 7.17 | 7.30 | 6.70 |
MasTec Inc's activity ratios reflect its efficiency in managing key components of its working capital.
1. Inventory Turnover: The inventory turnover ratio indicates how efficiently MasTec is managing its inventory. The trend shows a consistent improvement over the years, from 58.80 in 2020 to 99.46 in 2024. This indicates that MasTec has been able to sell its inventory more frequently each year, which is a positive sign of effective inventory management.
2. Receivables Turnover: Unfortunately, data on receivables turnover is not provided, which limits our ability to assess how quickly the company is collecting its receivables from customers. Without this information, it's challenging to determine the efficiency of MasTec in collecting payments from credit sales.
3. Payables Turnover: Similarly, details on payables turnover are not available in the provided data. Payables turnover ratio measures how efficiently a company is managing its accounts payable. Without this information, the assessment of MasTec's ability to manage its payables effectively is incomplete.
4. Working Capital Turnover: The working capital turnover ratio evaluates how effectively MasTec is utilizing its working capital to generate revenue. The increasing trend from 6.70 in 2020 to 18.85 in 2024 indicates that MasTec has been able to generate more revenue per unit of working capital. This suggests that the company's operational efficiency has improved over the years, leading to better utilization of its resources.
In conclusion, MasTec Inc has shown positive trends in inventory turnover and working capital turnover, indicating improved efficiency in managing inventory and working capital. However, the lack of data on receivables and payables turnover limits a comprehensive assessment of the company's overall activity ratios.
Average number of days
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 3.67 | 3.52 | 5.01 | 4.97 | 6.21 |
| Days of sales outstanding (DSO) | days | — | — | — | — | — |
| Number of days of payables | days | — | — | — | — | — |
MasTec Inc's activity ratios provide insights into how efficiently the company manages its assets and liabilities related to its operations.
1. Days of Inventory on Hand (DOH):
- The trend in MasTec Inc's DOH shows a gradual decrease from 6.21 days in December 2020 to 3.67 days in December 2024. This indicates that the company has been more effective in managing its inventory levels, possibly by improving inventory turnover or streamlining inventory management processes.
2. Days of Sales Outstanding (DSO):
- The data does not provide information on MasTec Inc's DSO for the given years, implying that details regarding the time it takes for the company to collect its accounts receivable are not available. Without this data, it is challenging to assess the efficiency of MasTec Inc's credit and collection policies.
3. Number of Days of Payables:
- Similarly, there is no specific data provided on MasTec Inc's number of days of payables for the mentioned years, making it difficult to analyze the company's payment practices and relationships with its vendors.
In summary, based on the available information, MasTec Inc seems to have made improvements in managing its inventory levels over the years. However, a more comprehensive analysis would require data on DSO and payables to assess the overall efficiency of MasTec Inc's working capital management.
Long-term
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Fixed asset turnover | — | — | 4.81 | 4.69 | 6.43 |
| Total asset turnover | 1.37 | 1.28 | 1.05 | 1.12 | 1.21 |
MasTec Inc's fixed asset turnover has shown a decreasing trend over the years, from 6.43 in 2020 to 4.69 in 2021 and 4.81 in 2022. However, data for 2023 and 2024 are not available. This indicates that the company is generating less revenue relative to its investment in fixed assets.
In contrast, the total asset turnover ratio has fluctuated over the years. It was 1.21 in 2020, decreased to 1.12 in 2021 and 1.05 in 2022, but then increased to 1.28 in 2023 and further to 1.37 in 2024. The increasing trend in the total asset turnover suggests that MasTec Inc is becoming more efficient in generating revenue from its total assets.
Overall, while the fixed asset turnover ratio indicates a potential inefficiency in utilizing fixed assets, the increasing trend in the total asset turnover ratio signals an improvement in the company's overall asset utilization efficiency.