MasTec Inc (MTZ)
Cash conversion cycle
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 3.58 | 3.34 | 3.54 | 3.75 | 3.67 | 4.56 | 5.77 | 6.53 | 5.01 | 6.20 | 6.12 | 5.27 | 4.97 | 5.10 | 5.41 | 6.09 | 6.21 | 5.80 | 6.73 | 6.50 |
| Days of sales outstanding (DSO) | days | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Number of days of payables | days | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Cash conversion cycle | days | 3.58 | 3.34 | 3.54 | 3.75 | 3.67 | 4.56 | 5.77 | 6.53 | 5.01 | 6.20 | 6.12 | 5.27 | 4.97 | 5.10 | 5.41 | 6.09 | 6.21 | 5.80 | 6.73 | 6.50 |
December 31, 2024 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 3.58 + — – —
= 3.58
The cash conversion cycle of MasTec Inc has shown fluctuations over the years, reflecting the efficiency of its working capital management.
The cycle decreased from 6.50 days on March 31, 2020, to a low of 3.34 days on September 30, 2024. This downward trend indicates that the company has been improving its ability to convert its investments in raw materials and other resources into cash flows efficiently.
A shorter cash conversion cycle suggests that MasTec Inc is managing its inventory, receivables, and payables effectively, resulting in quicker cash generation from its operations. This efficiency is favorable as it allows the company to optimize its cash resources and reduce the overall cash tied up in the operational cycle.
Overall, the decreasing trend in the cash conversion cycle for MasTec Inc indicates a positive direction in its working capital management, implying potential improvements in liquidity and operational efficiency over the period under review.
Peer comparison
Dec 31, 2024