Mohawk Industries Inc (MHK)
Inventory 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cost of revenue (ttm) | US$ in thousands | 11,028,370 | 11,215,950 | 11,095,370 | 11,047,840 | 11,587,990 | 11,460,890 | 10,495,130 | 10,259,780 | 9,920,110 | 9,778,320 | 9,661,490 | 9,227,560 | 9,018,420 | 8,943,430 | 8,947,420 | 9,149,580 | 9,312,290 | 9,252,240 | 9,167,490 | 9,100,710 |
| Inventory | US$ in thousands | 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 | 2,282,330 | 2,337,950 | 2,367,630 | 2,338,120 |
| Inventory turnover | 4.32 | 4.45 | 4.24 | 4.05 | 4.15 | 3.95 | 3.71 | 4.08 | 4.15 | 4.41 | 4.64 | 4.62 | 4.71 | 4.86 | 4.66 | 4.17 | 4.08 | 3.96 | 3.87 | 3.89 |
December 31, 2023 calculation
Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $11,028,370K ÷ $2,551,850K
= 4.32
The inventory turnover ratio of Mohawk Industries, Inc. has been relatively stable over the past eight quarters, ranging between 3.01 and 3.39. This indicates that, on average, the company has been able to sell and replace its inventory approximately three times a year. A higher inventory turnover ratio suggests efficient inventory management, as it indicates that the company is selling its products quickly and not holding onto excess inventory.
Although there has been some fluctuation in the ratio, the overall trend appears to be consistent. However, an increasing trend in inventory turnover may indicate that the company is managing its inventory more efficiently or experiencing strong demand for its products. Conversely, a declining trend could signal potential issues such as overstocking or slowing sales.
It is essential for Mohawk Industries, Inc. to continue monitoring its inventory turnover ratio to ensure optimal inventory management and align its operations with market demand.
Peer comparison
Dec 31, 2023
Dec 31, 2023