Mohawk Industries Inc (MHK)
Days of inventory on hand (DOH)
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Inventory turnover | 3.24 | 3.30 | 3.15 | 3.32 | 3.72 | |
| DOH | days | 112.58 | 110.55 | 115.96 | 110.06 | 98.05 |
December 31, 2024 calculation
DOH = 365 ÷ Inventory turnover
= 365 ÷ 3.24
= 112.58
The days of inventory on hand (DOH) for Mohawk Industries Inc have exhibited a general upward trend over the past five years. Starting at 98.05 days on December 31, 2020, the DOH increased to 110.06 days by December 31, 2021, indicating that it took the company longer to sell its inventory. This trend continued as the DOH rose to 115.96 days by December 31, 2022, further suggesting inefficiencies in inventory management.
However, there was a slight improvement by December 31, 2023, with the DOH decreasing to 110.55 days, although still higher compared to the initial levels. Subsequently, by December 31, 2024, the DOH increased again to 112.58 days, indicating that Mohawk Industries Inc may be facing challenges in optimizing its inventory turnover.
Overall, the increasing trend in DOH over the five-year period signals that Mohawk Industries Inc may be facing difficulties in efficiently managing its inventory levels, potentially leading to increased holding costs and reduced liquidity. Further analysis and proactive measures may be necessary to address these inventory management inefficiencies and enhance the company's operational performance.
Peer comparison
Dec 31, 2024