Mohawk Industries Inc (MHK)
Days of sales outstanding (DSO)
| 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 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Receivables turnover | 5.90 | 5.71 | 5.39 | 5.59 | 6.13 | 5.88 | 5.55 | 5.62 | 6.05 | 5.87 | 5.35 | 5.45 | 5.56 | 5.43 | 5.83 | 5.94 | 6.51 | 5.58 | 5.49 | 5.72 | |
| DSO | days | 61.82 | 63.88 | 67.69 | 65.28 | 59.56 | 62.04 | 65.77 | 64.99 | 60.33 | 62.22 | 68.27 | 66.95 | 65.64 | 67.23 | 62.64 | 61.40 | 56.06 | 65.47 | 66.50 | 63.76 |
December 31, 2023 calculation
DSO = 365 ÷ Receivables turnover
= 365 ÷ 5.90
= 61.82
To analyze Mohawk Industries, Inc.'s days of sales outstanding (DSO) over the past eight quarters, we observe a fluctuating trend. DSO peaked at 67.27 days in Q2 2023 before decreasing to 64.98 days in Q1 2023. This improvement was followed by a slight increase to 63.48 days in Q3 2023 and a further decrease to 61.45 days in Q4 2023.
Comparing these figures to the same quarters in the previous year, we notice a general increase in DSO over the recent quarters. Q4 2023's DSO of 61.45 days is higher than Q4 2022's 59.24 days. This suggests that the company may be experiencing challenges in collecting its accounts receivable within a similar timeframe as in the past.
It is essential for Mohawk Industries, Inc. to closely monitor and manage its DSO as a high DSO indicates a longer time taken to convert sales into cash, potentially leading to cash flow issues and impacting liquidity. Further analysis and comparison with industry benchmarks are recommended to assess the company's efficiency in managing its accounts receivable.
Peer comparison
Dec 31, 2023