Mohawk Industries Inc (MHK)
Fixed asset turnover
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (ttm) | US$ in thousands | 11,069,310 | 11,102,500 | 11,254,030 | 11,474,710 | 11,672,300 | 11,785,660 | 11,686,880 | 11,483,230 | 11,131,870 | 11,030,910 | 10,787,740 | 9,889,430 | 9,505,800 | 9,288,550 | 9,244,070 | 9,776,680 | 9,939,820 | 9,963,930 | 9,986,970 | 9,980,730 |
| Property, plant and equipment | US$ in thousands | 4,993,170 | 4,788,820 | 4,957,220 | 4,945,950 | 4,661,180 | 4,524,540 | 4,582,080 | 4,552,610 | 4,636,860 | 4,442,340 | 4,459,380 | 4,432,110 | 4,591,230 | 4,405,240 | 4,434,540 | 4,472,910 | 4,698,920 | 4,600,630 | 4,714,310 | 4,674,440 |
| Fixed asset turnover | 2.22 | 2.32 | 2.27 | 2.32 | 2.50 | 2.60 | 2.55 | 2.52 | 2.40 | 2.48 | 2.42 | 2.23 | 2.07 | 2.11 | 2.08 | 2.19 | 2.12 | 2.17 | 2.12 | 2.14 |
December 31, 2023 calculation
Fixed asset turnover = Revenue (ttm) ÷ Property, plant and equipment
= $11,069,310K ÷ $4,993,170K
= 2.22
Based on the data provided, Mohawk Industries, Inc.'s fixed asset turnover ratio has ranged between 2.23 and 2.62 over the past eight quarters. The fixed asset turnover ratio measures how efficiently the company is utilizing its fixed assets to generate revenue.
The fixed asset turnover ratio has generally been stable, with fluctuations within a relatively narrow range. A higher fixed asset turnover ratio indicates that the company is generating more revenue per dollar of fixed assets, which suggests efficient management of its asset base.
The slight decreases in the fixed asset turnover ratio from Q4 2022 to Q1 2023 and then from Q3 2023 to Q4 2023 could imply either a decrease in revenue generation from fixed assets or an increase in the company's investment in fixed assets, or a combination of both.
Overall, the fixed asset turnover ratio analysis suggests that Mohawk Industries, Inc. is effectively leveraging its fixed assets to support revenue generation, but it may be worth further investigation to assess any underlying factors contributing to the fluctuations observed in the ratio.
Peer comparison
Dec 31, 2023