Mohawk Industries Inc (MHK)
Inventory turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 8,149,200 | 8,425,460 | 8,793,640 | 7,931,880 | 7,121,510 |
| Inventory | US$ in thousands | 2,513,600 | 2,551,850 | 2,793,760 | 2,391,670 | 1,913,020 |
| Inventory turnover | 3.24 | 3.30 | 3.15 | 3.32 | 3.72 |
December 31, 2024 calculation
Inventory turnover = Cost of revenue ÷ Inventory
= $8,149,200K ÷ $2,513,600K
= 3.24
The inventory turnover ratio indicates how efficiently a company manages its inventory. In the case of Mohawk Industries Inc, the inventory turnover has shown a slight decline from 3.72 in December 31, 2020, to 3.24 in December 31, 2024. This downward trend suggests that the company is taking longer to sell its inventory over the years. A lower inventory turnover may indicate overstocking, obsolete inventory, or changing market demand. It is important for Mohawk Industries Inc to closely monitor and manage its inventory levels to improve efficiency and profitability in the future.
Peer comparison
Dec 31, 2024