MasTec Inc (MTZ)
Payables 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 |
| Payables | US$ in thousands | 1,242,600 | 1,109,870 | 663,063 | 571,269 | 535,029 |
| Payables turnover | 9.81 | 8.90 | 11.60 | 10.49 | 12.05 |
December 31, 2023 calculation
Payables turnover = Cost of revenue ÷ Payables
= $12,191,000K ÷ $1,242,600K
= 9.81
The payables turnover ratio for MasTec Inc has been fluctuating over the past five years. The ratio indicates how efficiently the company is managing its trade payables. MasTec's payables turnover was 9.81 in 2023, 8.90 in 2022, 11.60 in 2021, 10.49 in 2020, and 12.05 in 2019.
A higher payables turnover ratio generally suggests that the company is paying off its suppliers more quickly, which can be a sign of good liquidity and effective cash management. Conversely, a lower payables turnover ratio may indicate that the company is taking longer to pay its suppliers, potentially signaling liquidity issues or inefficient use of working capital.
Overall, MasTec Inc's payables turnover ratio has varied over the years, and it would be important to further investigate the reasons behind these fluctuations to fully understand the company's payment practices and financial management strategies.
Peer comparison
Dec 31, 2023