MasTec Inc (MTZ)
Activity ratios
Short-term
Turnover ratios
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Inventory turnover | 102.03 | 109.24 | 103.05 | 97.28 | 99.54 | 80.05 | 63.26 | 55.86 | 72.78 | 58.87 | 59.61 | 69.27 | 73.50 | 71.57 | 67.45 | 59.98 | 58.80 | 62.93 | 54.27 | 56.15 |
| Receivables turnover | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Payables turnover | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Working capital turnover | 460.98 | 17.78 | 16.71 | 14.90 | 10.55 | 9.55 | 7.91 | 8.14 | 7.17 | 7.61 | 7.30 | 8.85 | 7.30 | 8.80 | 9.19 | 7.28 | 6.70 | 7.80 | 10.94 | 8.64 |
Based on the provided data, let's analyze MasTec Inc's activity ratios:
1. Inventory Turnover: The inventory turnover ratio indicates how many times a company's inventory is sold and replaced over a period. MasTec Inc's inventory turnover has fluctuated over the years but generally remained at a healthy level, ranging from 55 to over 100. A higher inventory turnover ratio suggests efficient inventory management and quick sales.
2. Receivables Turnover: Unfortunately, there is no data available for MasTec Inc's receivables turnover, which makes it impossible to assess how quickly the company is collecting its accounts receivable.
3. Payables Turnover: Similar to receivables turnover, data on payables turnover is not provided, preventing an analysis of how quickly MasTec Inc is paying its suppliers.
4. Working Capital Turnover: This ratio indicates how efficiently a company uses its working capital to generate sales. MasTec Inc's working capital turnover has shown some variation but generally increased significantly in recent quarters, reaching an extremely high value of 461 in December 2024. Such a surge in working capital turnover may indicate improved operational efficiency and sales generation relative to working capital.
In conclusion, MasTec Inc's inventory turnover reflects efficient inventory management, while the working capital turnover suggests a significant improvement in utilizing working capital to drive sales. However, the lack of data for receivables and payables turnover limits a comprehensive assessment of the company's overall efficiency in managing its working capital and relationships with customers and suppliers.
Average number of days
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 3.58 | 3.34 | 3.54 | 3.75 | 3.67 | 4.56 | 5.77 | 6.53 | 5.01 | 6.20 | 6.12 | 5.27 | 4.97 | 5.10 | 5.41 | 6.09 | 6.21 | 5.80 | 6.73 | 6.50 |
| Days of sales outstanding (DSO) | days | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Number of days of payables | days | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
MasTec Inc's Days of Inventory on Hand (DOH) ratio has been showing fluctuations over the past few years, ranging from a low of 3.34 days as of September 30, 2024, to a high of 6.73 days as of June 30, 2020. This ratio measures how many days it takes for the company to sell its inventory. A decreasing trend in this ratio indicates that MasTec has been managing its inventory more efficiently, as evidenced by the decreasing trend observed since June 30, 2022.
On the other hand, MasTec Inc's Days of Sales Outstanding (DSO) and Number of Days of Payables ratios are not available (denoted as "— days" for all periods provided). The DSO ratio would typically reflect the average number of days it takes for the company to collect revenue after a sale, while the Number of Days of Payables ratio would show the average number of days it takes for the company to pay its suppliers. The absence of data for these two ratios restricts a comprehensive analysis of MasTec's overall liquidity and working capital management efficiency.
In conclusion, although MasTec Inc seems to have improved its inventory management efficiency over the analyzed period, the lack of data for DSO and Payables ratios makes it challenging to provide a holistic assessment of the company's activity ratios and working capital management.
Long-term
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Fixed asset turnover | — | — | — | — | — | 5.50 | 5.23 | 5.19 | 4.81 | 4.79 | 4.64 | 4.77 | 4.69 | 6.17 | 5.52 | 6.52 | 6.43 | 6.43 | 6.90 | 7.56 |
| Total asset turnover | 1.37 | 1.39 | 1.40 | 1.38 | 1.23 | 1.23 | 1.18 | 1.15 | 1.05 | 1.15 | 1.14 | 1.15 | 1.12 | 1.29 | 1.20 | 1.21 | 1.21 | 1.23 | 1.35 | 1.45 |
The fixed asset turnover ratio measures how efficiently a company is utilizing its fixed assets to generate revenue. It indicates the company's ability to generate sales from its investments in property, plant, and equipment.
For MasTec Inc, the fixed asset turnover ratio has shown a declining trend over the analyzed period, starting at 7.56 in March 2020 and decreasing to 4.81 by December 2022. This decrease suggests that the company may be less efficient in generating revenue from its fixed assets over time.
On the other hand, the total asset turnover ratio measures how efficiently a company is using its total assets to generate sales. It reflects the company's ability to generate revenue relative to its total asset base.
MasTec Inc's total asset turnover ratio has fluctuated but generally declined from 1.45 in March 2020 to 1.37 by December 2024. This decline indicates that the company may be generating less revenue per dollar of total assets over the analyzed period.
Overall, the decreasing trends in both the fixed asset turnover and total asset turnover ratios for MasTec Inc suggest potential inefficiencies in asset utilization and revenue generation over the years, which may require further investigation to identify the underlying reasons and potential improvement strategies.