MasTec Inc (MTZ)
Working capital 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (ttm) | US$ in thousands | 11,995,910 | 11,724,180 | 10,980,560 | 10,408,250 | 9,777,990 | 8,579,070 | 8,469,890 | 8,130,800 | 7,951,820 | 7,779,220 | 7,073,200 | 6,679,800 | 6,320,980 | 6,393,480 | 6,711,800 | 7,081,500 | 7,183,200 | 7,391,500 | 7,352,100 | 7,030,900 |
| Total current assets | US$ in thousands | 3,974,250 | 4,038,530 | 3,829,000 | 3,656,660 | 3,859,130 | 3,114,280 | 3,057,220 | 2,784,280 | 2,873,950 | 2,588,420 | 2,408,290 | 2,550,420 | 2,359,020 | 2,334,080 | 2,137,050 | 2,079,800 | 2,173,560 | 2,198,700 | 2,127,010 | 2,262,060 |
| Total current liabilities | US$ in thousands | 2,837,220 | 2,811,290 | 2,440,840 | 2,378,540 | 2,496,040 | 1,986,480 | 1,897,690 | 1,866,040 | 1,784,600 | 1,704,310 | 1,638,990 | 1,632,900 | 1,415,200 | 1,514,150 | 1,523,390 | 1,260,030 | 1,219,130 | 1,334,500 | 1,391,200 | 1,262,650 |
| 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 |
December 31, 2023 calculation
Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $11,995,910K ÷ ($3,974,250K – $2,837,220K)
= 10.55
The working capital turnover ratio measures how efficiently a company is able to utilize its working capital to generate sales revenue. A higher working capital turnover ratio indicates that the company is effectively managing its working capital and turning it into sales.
Based on the data provided for MasTec Inc, we can observe fluctuations in the working capital turnover ratio over the past few quarters. The working capital turnover ratio has ranged from 6.70 to 10.94 over the last few years, with an average value of approximately 8.35 during this period.
The highest working capital turnover ratio of 10.94 was recorded in June 2020, indicating a peak level of efficiency in utilizing working capital to generate sales revenue. On the other hand, the lowest ratio of 6.70 was observed in December 2020, suggesting a decrease in efficiency in managing working capital during that period.
Overall, MasTec Inc has demonstrated varying levels of efficiency in converting working capital into sales revenue over the analyzed periods. It is essential for the company to consistently monitor and optimize its working capital management practices to ensure sustainable and efficient operations in the long term.
Peer comparison
Dec 31, 2023