MasTec Inc (MTZ)
Working capital turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 11,995,900 | 9,778,040 | 7,951,800 | 6,321,000 | 7,183,200 |
| Total current assets | US$ in thousands | 3,974,250 | 3,859,130 | 2,873,950 | 2,359,020 | 2,173,560 |
| Total current liabilities | US$ in thousands | 2,837,220 | 2,496,040 | 1,784,600 | 1,415,200 | 1,219,130 |
| Working capital turnover | 10.55 | 7.17 | 7.30 | 6.70 | 7.53 |
December 31, 2023 calculation
Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $11,995,900K ÷ ($3,974,250K – $2,837,220K)
= 10.55
MasTec Inc's working capital turnover has displayed fluctuations over the past five years. The ratio indicates how effectively the company is utilizing its working capital to generate revenue. A higher working capital turnover ratio signifies efficient utilization of resources, indicating that MasTec is generating a significant amount of revenue relative to its working capital.
Over the period in question, MasTec Inc experienced a notable increase in working capital turnover from 6.70 in 2020 to 10.55 in 2023. This rise suggests that the company has improved its efficiency in using its working capital to generate sales. The peak ratio in 2023 indicates that MasTec has been able to generate revenue more rapidly compared to the earlier years.
Despite the fluctuations observed over the years, MasTec Inc's working capital turnover generally stayed above 7.00, implying consistent efficiency in its capital utilization. This trend, coupled with the increment in the latest year, may indicate improved operational efficiency and effective management of working capital resources within the organization.
Overall, the upward trend in working capital turnover for MasTec Inc suggests an enhancement in operational efficiency and better utilization of resources to drive revenue generation.
Peer comparison
Dec 31, 2023