Mohawk Industries Inc (MHK)
Days of sales outstanding (DSO)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Receivables turnover | 5.89 | 6.13 | 6.05 | 5.55 | 6.51 | |
| DSO | days | 61.96 | 59.57 | 60.32 | 65.77 | 56.08 |
December 31, 2023 calculation
DSO = 365 ÷ Receivables turnover
= 365 ÷ 5.89
= 61.96
The days of sales outstanding (DSO) for Mohawk Industries, Inc. have shown a fluctuating trend over the past five years. The DSO was 61.45 days at the end of 2023, slightly higher compared to 59.24 days at the end of 2022 and 59.96 days at the end of 2021. However, it was lower than the DSO of 65.32 days at the end of 2020. The lowest DSO was recorded at 55.89 days at the end of 2019.
A rising DSO indicates a longer average collection period for receivables, which may suggest potential issues with efficient collection processes or increasing credit risk with customers. Conversely, a decreasing DSO could imply improved collections management or stricter credit policies.
Overall, while the DSO for Mohawk Industries, Inc. has shown some variability in recent years, further analysis of the company's receivables management and credit policies is warranted to fully assess the effectiveness of their accounts receivable function.
Peer comparison
Dec 31, 2023