Mohawk Industries Inc (MHK)
Fixed asset turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 11,044,200 | 11,671,300 | 11,133,200 | 9,486,860 | 9,935,830 |
| Property, plant and equipment | US$ in thousands | 4,993,170 | 4,661,180 | 4,636,860 | 4,591,230 | 4,698,920 |
| Fixed asset turnover | 2.21 | 2.50 | 2.40 | 2.07 | 2.11 |
December 31, 2023 calculation
Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $11,044,200K ÷ $4,993,170K
= 2.21
Fixed asset turnover is a key financial ratio that measures how effectively a company is utilizing its fixed assets to generate revenue. In the case of Mohawk Industries, Inc., the fixed asset turnover ratio has shown fluctuations over the past five years.
The trend in Mohawk Industries' fixed asset turnover ratio indicates variations in the efficiency of the company's utilization of its fixed assets to generate sales. In 2023, the ratio decreased to 2.23 from 2.52 in 2022, suggesting a decrease in the company's ability to generate revenue from its fixed assets. This could indicate either a decrease in sales relative to fixed assets or an increase in the value of fixed assets.
Comparing the ratios over the five-year period, the highest fixed asset turnover of 2.52 was achieved in 2022, suggesting that the company's fixed assets were more productive in generating revenue during that period. On the other hand, 2020 and 2019 saw lower ratios of 2.08 and 2.12, respectively, indicating less efficient utilization of fixed assets during those years.
Overall, Mohawk Industries' fixed asset turnover ratios show some volatility, which may reflect changes in the company's sales relative to its investment in fixed assets. Further analysis and comparison with industry benchmarks could provide additional insights into the company's operational efficiency and asset utilization strategies.
Peer comparison
Dec 31, 2023