MasTec Inc (MTZ)
Payables turnover
| Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cost of revenue (ttm) | US$ in thousands | 12,106,630 | 11,832,750 | 11,065,860 | 10,544,410 | 9,850,900 | 8,579,820 | 8,413,650 | 7,990,870 | 7,649,560 | 7,205,000 | 6,469,480 | 6,094,250 | 5,782,050 | 5,894,050 | 6,126,200 | 4,690,659 | 3,372,595 | 1,986,095 | 286,146 | 283,629 |
| Payables | US$ in thousands | 1,242,600 | 1,213,860 | 930,270 | 925,609 | 1,109,870 | 934,542 | 799,905 | 704,313 | 663,063 | 688,680 | 629,910 | 632,088 | 571,269 | 582,849 | 630,456 | 533,509 | 535,029 | 625,008 | 633,245 | 558,696 |
| Payables turnover | 9.74 | 9.75 | 11.90 | 11.39 | 8.88 | 9.18 | 10.52 | 11.35 | 11.54 | 10.46 | 10.27 | 9.64 | 10.12 | 10.11 | 9.72 | 8.79 | 6.30 | 3.18 | 0.45 | 0.51 |
December 31, 2023 calculation
Payables turnover = Cost of revenue (ttm) ÷ Payables
= $12,106,630K ÷ $1,242,600K
= 9.74
The payables turnover ratio measures the efficiency with which a company pays its suppliers or vendors. A higher payables turnover ratio indicates that the company is paying its suppliers more frequently within a given period.
Based on the data provided for MasTec Inc, the payables turnover ratio has varied over the past few quarters. In the most recent quarter, ending December 31, 2023, the payables turnover ratio was 9.74, which indicates that MasTec Inc was able to pay its suppliers approximately 9.74 times during that quarter.
The trend in the payables turnover ratio shows fluctuation, with some quarters showing higher ratios (e.g., June 30, 2023, and March 31, 2022) and others showing lower ratios (e.g., March 31, 2020, and March 31, 2019). The overall trend appears to be somewhat cyclical, with fluctuations potentially resulting from seasonal variations in the company's operations or changes in payment terms with suppliers.
It's essential for MasTec Inc to maintain an appropriate balance in its payables turnover ratio. A consistently low ratio may indicate inefficiencies in managing payables and potential cash flow issues, while a very high ratio may suggest aggressive payment practices that could strain supplier relationships.
Further analysis and comparison with industry benchmarks would provide a more comprehensive understanding of MasTec Inc's payables management efficiency and its impact on the company's overall financial health.
Peer comparison
Dec 31, 2023