MasTec Inc (MTZ)
Inventory turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 12,191,000 | 9,880,470 | 7,692,820 | 5,994,720 | 6,444,660 |
| Inventory | US$ in thousands | 108,146 | 117,969 | 92,595 | 89,645 | 100,069 |
| Inventory turnover | 112.73 | 83.75 | 83.08 | 66.87 | 64.40 |
December 31, 2023 calculation
Inventory turnover = Cost of revenue ÷ Inventory
= $12,191,000K ÷ $108,146K
= 112.73
MasTec Inc's inventory turnover has shown a consistent increasing trend over the past five years. The inventory turnover ratio measures how efficiently the company is managing its inventory by indicating how many times the inventory is sold and replaced over a certain period. MasTec's inventory turnover has increased from 64.40 in 2019 to 112.73 in 2023, reflecting an improvement in the company's ability to sell and replace inventory.
A higher inventory turnover ratio indicates that MasTec is selling its inventory more frequently, which could imply strong demand for its products or effective inventory management practices. This trend suggests that MasTec has been effectively balancing its production with customer demand and avoiding excess inventory buildup.
Overall, the consistent increase in MasTec's inventory turnover ratio reflects positively on the company's operational efficiency and inventory management efforts, signaling potential improvements in working capital management and profitability.
Peer comparison
Dec 31, 2023