MasTec Inc (MTZ)
Working capital turnover
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (ttm) | US$ in thousands | 12,303,470 | 12,180,450 | 12,185,100 | 12,098,130 | 11,995,940 | 11,724,220 | 10,980,620 | 10,408,290 | 9,778,030 | 8,579,040 | 8,469,890 | 8,130,760 | 7,951,780 | 7,779,210 | 7,073,160 | 6,679,800 | 6,320,980 | 6,393,400 | 6,711,740 | 7,081,450 |
| Total current assets | US$ in thousands | 3,026,390 | 3,572,900 | 3,477,060 | 3,445,470 | 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 | 2,079,780 |
| Total current liabilities | US$ in thousands | 2,999,700 | 2,887,750 | 2,747,910 | 2,633,370 | 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 |
| 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 |
December 31, 2024 calculation
Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $12,303,470K ÷ ($3,026,390K – $2,999,700K)
= 460.98
The working capital turnover ratio reflects how efficiently MasTec Inc is using its working capital to generate sales revenue. A higher ratio indicates that the company is efficiently utilizing its working capital to support its operations and sales.
Analyzing the data provided:
- The working capital turnover ratio showed fluctuations over the period from March 31, 2020, to December 31, 2024. The ratio ranged from a low of 6.70 on December 31, 2020, to a high of 460.98 on December 31, 2024.
- The ratio experienced significant spikes in the second half of 2024, reaching its peak on December 31, 2024, indicating a substantial increase in sales relative to working capital.
- Prior to the notable increase, the ratio generally fluctuated around the range of 7 to 10, showing some stability in the company's efficiency in using its working capital to generate revenue.
Overall, MasTec Inc's working capital turnover ratio has shown variability over the years, with occasional spikes and dips. The significant increase on December 31, 2024, could suggest improved efficiency in utilizing working capital to drive sales growth. Further analysis and comparison with industry benchmarks can provide more insights into the company's operational efficiency.
Peer comparison
Dec 31, 2024