Mohawk Industries Inc (MHK)
Inventory turnover
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cost of revenue (ttm) | US$ in thousands | 8,106,900 | 8,058,660 | 8,106,440 | 8,282,660 | 8,422,640 | 8,551,720 | 8,681,420 | 8,742,890 | 8,793,650 | 8,720,700 | 8,496,520 | 8,268,160 | 7,931,880 | 7,812,270 | 7,701,240 | 7,329,440 | 7,121,500 | 7,019,520 | 6,978,340 | 7,146,380 |
| Inventory | US$ in thousands | 2,513,600 | 2,612,100 | 2,579,900 | 2,527,700 | 2,551,850 | 2,519,710 | 2,618,710 | 2,729,880 | 2,793,760 | 2,900,120 | 2,826,040 | 2,513,240 | 2,391,670 | 2,215,630 | 2,081,970 | 1,996,630 | 1,913,020 | 1,841,970 | 1,922,050 | 2,195,430 |
| Inventory turnover | 3.23 | 3.09 | 3.14 | 3.28 | 3.30 | 3.39 | 3.32 | 3.20 | 3.15 | 3.01 | 3.01 | 3.29 | 3.32 | 3.53 | 3.70 | 3.67 | 3.72 | 3.81 | 3.63 | 3.26 |
December 31, 2024 calculation
Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $8,106,900K ÷ $2,513,600K
= 3.23
The inventory turnover ratio for Mohawk Industries Inc has been relatively stable over the analyzed period, ranging between 3.01 and 3.81. This metric indicates how efficiently the company manages its inventory by measuring the number of times inventory is sold and replaced during a specific period. A higher turnover ratio generally signifies effective inventory management and indicates that the company is selling products quickly.
In this case, Mohawk Industries Inc's inventory turnover has averaged around 3.33 over the period, which suggests that the company, on average, sells and replaces its inventory approximately 3.33 times a year. The slight fluctuations in the ratio indicate fluctuations in the company's sales and inventory management practices.
Overall, a consistently moderate inventory turnover ratio for Mohawk Industries Inc implies that the company is managing its inventory effectively, striking a balance between stocking enough inventory to meet demand without overstocking. Further analysis could be conducted to compare this ratio to industry benchmarks or historical data to provide more context and insights into the company's operational efficiency.
Peer comparison
Dec 31, 2024
Dec 31, 2024