Mohawk Industries Inc (MHK)
Days of inventory on hand (DOH)
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Inventory turnover | 3.23 | 3.09 | 3.14 | 3.28 | 3.30 | 3.39 | 3.32 | 3.20 | 3.15 | 3.01 | 3.01 | 3.29 | 3.32 | 3.53 | 3.70 | 3.67 | 3.72 | 3.81 | 3.63 | 3.26 | |
| DOH | days | 113.17 | 118.31 | 116.16 | 111.39 | 110.59 | 107.54 | 110.10 | 113.97 | 115.96 | 121.38 | 121.40 | 110.95 | 110.06 | 103.52 | 98.67 | 99.43 | 98.05 | 95.78 | 100.53 | 112.13 |
December 31, 2024 calculation
DOH = 365 ÷ Inventory turnover
= 365 ÷ 3.23
= 113.17
Days of Inventory on Hand (DOH) is a financial ratio that measures how many days, on average, a company holds onto its inventory before selling it. A higher DOH value indicates that a company is taking longer to sell its inventory, which may tie up working capital and lead to potential obsolescence risks.
Analyzing Mohawk Industries Inc's DOH over the past few years, we observe fluctuations in the ratio. The trend shows that the company's inventory turnover has varied, which could be driven by factors such as changes in demand, production efficiency, and inventory management.
From March 31, 2020, to June 30, 2022, Mohawk Industries Inc saw a generally decreasing trend in DOH, indicating a more efficient management of inventory during this period. However, from June 30, 2022, to September 30, 2024, the DOH increased, suggesting the company might have experienced challenges in inventory turnover or faced a slowdown in sales.
Overall, a careful assessment of the reasons behind the fluctuations in DOH can provide insights into Mohawk Industries Inc's operational effectiveness, working capital management, and market demand dynamics. Monitoring this ratio would be crucial for identifying potential inefficiencies in inventory management and optimizing the company's overall financial performance.
Peer comparison
Dec 31, 2024