MasTec Inc (MTZ)

Liquidity ratios

Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Current ratio 1.22 1.40 1.55 1.61 1.67
Quick ratio 0.13 0.19 0.15 0.21 0.31
Cash ratio 0.13 0.19 0.15 0.21 0.31

MasTec Inc's liquidity ratios have shown a decreasing trend over the past five years. The current ratio decreased from 1.67 in December 31, 2020, to 1.22 in December 31, 2024, indicating a declining ability to cover short-term obligations with current assets.

Similarly, the quick ratio also declined from 0.31 in December 31, 2020, to 0.13 in December 31, 2024, signaling a reduced ability to meet immediate financial obligations without relying on inventory.

The cash ratio, which measures the company's ability to cover its current liabilities with cash and cash equivalents, also witnessed a decrease from 0.31 in December 31, 2020, to 0.13 in December 31, 2024. This suggests that MasTec Inc may have limited cash reserves to settle its short-term liabilities.

Overall, the decreasing liquidity ratios of MasTec Inc raise concerns about its short-term financial stability and ability to meet its upcoming obligations without facing liquidity constraints. The company may need to carefully manage its working capital and liquidity position to ensure smooth operations and mitigate financial risks in the future.


Additional liquidity measure

Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Cash conversion cycle days 3.67 3.52 5.01 4.97 6.21

The cash conversion cycle of MasTec Inc has shown a consistent trend of improvement over the past five years based on the provided data. Starting at 6.21 days on December 31, 2020, the company's cash conversion cycle decreased to 4.97 days by December 31, 2021, and continued to improve further to 5.01 days by December 31, 2022. Notably, by December 31, 2023, MasTec Inc managed to reduce its cash conversion cycle significantly to 3.52 days, indicating a more efficient management of working capital. The trend continued positively into December 31, 2024, where the cash conversion cycle slightly increased to 3.67 days but remained at a favorable level compared to the initial period. This downward trend in the cash conversion cycle suggests that MasTec Inc has been effectively managing its cash flow, accounts receivable, and inventory turnover, resulting in a shorter time to convert its investments in inventory and accounts receivable into cash receipts.