MasTec Inc (MTZ)
Current ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Total current assets | US$ in thousands | 3,974,250 | 3,859,130 | 2,873,950 | 2,359,020 | 2,173,560 |
| Total current liabilities | US$ in thousands | 2,837,220 | 2,496,040 | 1,784,600 | 1,415,200 | 1,219,130 |
| Current ratio | 1.40 | 1.55 | 1.61 | 1.67 | 1.78 |
December 31, 2023 calculation
Current ratio = Total current assets ÷ Total current liabilities
= $3,974,250K ÷ $2,837,220K
= 1.40
MasTec Inc's current ratio has been decreasing over the past five years, from 1.78 in 2019 to 1.40 in 2023. The current ratio measures the company's ability to cover its short-term obligations with its current assets. A higher current ratio indicates a stronger liquidity position and implies that the company is better positioned to meet its short-term liabilities.
The decreasing trend in MasTec Inc's current ratio suggests that the company may be experiencing challenges in managing its short-term liquidity or increasing its short-term liabilities relative to its current assets. This could potentially indicate inefficiencies in managing its working capital or an imbalance in the company's current asset and current liability structure.
It is important for MasTec Inc to closely monitor its current ratio and address any factors contributing to the decreasing trend to ensure it maintains a healthy liquidity position and is able to meet its short-term financial obligations effectively.
Peer comparison
Dec 31, 2023