MasTec Inc (MTZ)
Cash conversion cycle
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 3.24 | 4.36 | 4.39 | 5.46 | 5.67 |
| Days of sales outstanding (DSO) | days | 41.69 | 52.25 | 46.79 | 45.30 | 43.21 |
| Number of days of payables | days | 37.20 | 41.00 | 31.46 | 34.78 | 30.30 |
| Cash conversion cycle | days | 7.72 | 15.61 | 19.72 | 15.97 | 18.57 |
December 31, 2023 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 3.24 + 41.69 – 37.20
= 7.72
The cash conversion cycle of MasTec Inc has fluctuated over the past five years. The company's ability to convert its resources efficiently into cash has improved significantly from 2019 to 2020, then saw a slight increase in 2021 and a further improvement in 2022 before a decrease in 2023. The decreasing trend in the cash conversion cycle suggests that MasTec Inc has been managing its cash flow and working capital more effectively in recent years, potentially improving its liquidity position and operational efficiency. However, it is worth noting that the company experienced a slight increase in the cash conversion cycle in 2023, which may indicate a temporary impact on its cash conversion efficiency during that period. Overall, a lower cash conversion cycle indicates that MasTec Inc is efficiently managing its working capital and generating cash from its operations.
Peer comparison
Dec 31, 2023