MasTec Inc (MTZ)
Activity ratios
Short-term
Turnover ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Inventory turnover | 111.95 | 91.62 | 72.40 | 63.94 | 83.50 | 67.27 | 67.98 | 78.79 | 82.61 | 78.50 | 74.06 | 65.76 | 64.50 | 68.90 | 58.40 | 44.01 | 33.70 | 18.62 | 2.25 | 2.33 |
| Receivables turnover | 8.76 | 7.60 | 7.39 | 7.59 | 6.99 | 8.11 | 8.35 | 9.01 | 7.80 | 8.13 | 8.17 | 7.62 | 8.06 | 6.97 | 7.23 | 8.90 | 8.45 | 3.78 | 3.99 | 3.54 |
| 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 |
| Working capital turnover | 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 | 7.53 | 8.55 | 9.99 | 7.04 |
MasTec Inc's activity ratios provide insights into how efficiently the company is managing its resources.
Inventory turnover has been fluctuating over the periods but generally shows a positive trend, indicating that the company is efficiently managing its inventory levels and quickly selling its products.
Receivables turnover has also shown some variability, but it generally indicates that MasTec is collecting its accounts receivable in a reasonable timeframe, ensuring a steady cash flow from its sales.
Payables turnover has been somewhat stable over the periods, suggesting that MasTec is effectively managing its payments to suppliers. A higher turnover ratio may indicate that the company is paying its suppliers faster.
The working capital turnover ratio has shown fluctuations but remains relatively stable overall. This ratio indicates how effectively MasTec is using its working capital to generate sales revenue. A higher turnover ratio suggests that the company is efficiently utilizing its working capital to support its operations.
Overall, MasTec Inc's activity ratios demonstrate that the company is managing its assets, receivables, payables, and working capital efficiently, which is essential for maintaining stability and growth in its operations.
Average number of days
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 3.26 | 3.98 | 5.04 | 5.71 | 4.37 | 5.43 | 5.37 | 4.63 | 4.42 | 4.65 | 4.93 | 5.55 | 5.66 | 5.30 | 6.25 | 8.29 | 10.83 | 19.61 | 161.95 | 156.55 |
| Days of sales outstanding (DSO) | days | 41.69 | 48.03 | 49.37 | 48.12 | 52.25 | 44.99 | 43.72 | 40.51 | 46.79 | 44.90 | 44.65 | 47.91 | 45.30 | 52.36 | 50.45 | 41.03 | 43.21 | 96.46 | 91.44 | 103.12 |
| Number of days of payables | days | 37.46 | 37.44 | 30.68 | 32.04 | 41.12 | 39.76 | 34.70 | 32.17 | 31.64 | 34.89 | 35.54 | 37.86 | 36.06 | 36.09 | 37.56 | 41.51 | 57.90 | 114.86 | 807.75 | 718.98 |
MasTec Inc's activity ratios provide insights into how efficiently the company manages its inventory, collects its receivables, and pays its suppliers.
1. Days of Inventory on Hand (DOH):
- The trend in MasTec's DOH has generally improved over the past few quarters, indicating a more efficient management of inventory.
- The significant reduction in DOH from 161.95 days in Q1 2019 to 3.26 days in Q4 2023 reflects a substantial improvement in inventory turnover efficiency.
- However, the spike in Q1 2020 and Q4 2019 suggests temporary disruptions or issues in managing inventory levels effectively.
2. Days of Sales Outstanding (DSO):
- MasTec has shown some fluctuation in DSO over the quarters, but the trend has generally improved.
- A decrease in DSO from 103.12 days in Q1 2019 to 41.69 days in Q4 2023 indicates better management of accounts receivable and faster collection cycles over time.
- The reduction in DSO reflects improved efficiency in converting sales into cash, which is a positive sign for the company's liquidity.
3. Number of Days of Payables:
- MasTec's days of payables have shown fluctuations but overall trended downwards, indicating that the company is taking longer to pay its suppliers.
- A decrease in the number of days of payables from 807.75 days in Q3 2019 to 37.46 days in Q4 2023 suggests the company is managing its payables more efficiently and possibly taking advantage of better payment terms.
- However, a significant increase in payables in Q3 2019 and Q4 2019 may indicate challenges in managing payment obligations efficiently during those periods.
In conclusion, MasTec Inc's activity ratios reflect improvements in inventory turnover, accounts receivable management, and payables efficiency over the quarters, indicating enhanced operational efficiency and better working capital management.
Long-term
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Fixed asset turnover | 10.18 | 9.41 | 8.77 | 8.54 | 8.02 | 7.60 | 7.57 | 7.92 | 8.22 | 12.96 | 11.14 | 6.52 | 6.43 | 6.43 | 6.90 | 7.56 | 7.93 | 8.57 | 8.62 | 8.79 |
| Total asset turnover | 1.28 | 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 | 1.44 | 1.52 | 1.53 | 1.45 |
MasTec Inc's long-term activity ratios indicate the efficiency of the company in utilizing its assets to generate revenue. The fixed asset turnover ratio has been relatively stable over the periods, ranging from 6.43 to 12.96 times. This suggests that the company is effectively generating revenue from its fixed assets, with a notable peak in the Sep 2021 quarter. The consistency in this ratio implies efficient management of long-term assets.
On the other hand, the total asset turnover ratio shows a declining trend over the periods, from 1.53 to 1.05 times. This indicates that the company's overall efficiency in generating sales from all assets has decreased. However, the ratio has remained above 1, indicating that MasTec Inc is still generating more in sales relative to its total assets.
Overall, MasTec Inc's long-term activity ratios suggest a strong performance in utilizing fixed assets to drive revenue, although there is a slight decrease in the efficiency of utilizing total assets for generating sales. Monitoring these ratios can help assess the company's asset utilization efficiency over time.