MasTec Inc (MTZ)
Inventory turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 10,676,000 | 11,209,100 | 8,586,330 | 6,805,740 | 5,270,880 |
| Inventory | US$ in thousands | 107,345 | 108,146 | 117,969 | 92,595 | 89,645 |
| Inventory turnover | 99.46 | 103.65 | 72.78 | 73.50 | 58.80 |
December 31, 2024 calculation
Inventory turnover = Cost of revenue ÷ Inventory
= $10,676,000K ÷ $107,345K
= 99.46
MasTec Inc's inventory turnover has demonstrated a positive trend over the past five years, increasing from 58.80 in December 31, 2020, to 99.46 in December 31, 2024. This improvement indicates that the company is efficiently managing its inventory levels and converting its inventory into sales at a faster pace.
The inventory turnover ratio measures how many times a company sells and replaces its inventory within a given period. A higher inventory turnover ratio suggests that MasTec Inc is effectively managing its inventory, avoiding excess stockpiling, and minimizing the risk of obsolete inventory.
The significant increase in inventory turnover from 2020 to 2024 reflects MasTec Inc's ability to optimize its inventory management practices, potentially resulting in lower carrying costs and improved cash flow. This enhanced efficiency is advantageous for the company's overall financial performance and operational effectiveness.
Overall, MasTec Inc's improving inventory turnover ratio signifies its capacity to streamline inventory operations and meet customer demand promptly. This trend is a positive indicator of the company's operational efficiency and prudent inventory management strategy over the analyzed period.
Peer comparison
Dec 31, 2024