Mohawk Industries Inc (MHK)
Payables 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 |
| Payables | US$ in thousands | 1,038,020 | 1,082,400 | 1,184,100 | — | 1,094,040 | — | — | — | 1,228,620 | — | — | — | — | — | — | — | — | — | — | — |
| Payables turnover | 10.62 | 10.36 | 9.37 | — | 10.59 | — | — | — | 8.07 | — | — | — | — | — | — | — | — | — | — | — |
December 31, 2023 calculation
Payables turnover = Cost of revenue (ttm) ÷ Payables
= $11,028,370K ÷ $1,038,020K
= 10.62
Based on the data provided for Mohawk Industries, Inc., the payables turnover ratios have displayed some fluctuations over the past eight quarters. The payables turnover ratio measures how efficiently the company is managing its accounts payable by revealing how many times the company pays off its suppliers in a given period.
In Q4 2023, the payables turnover ratio was 8.12, slightly higher than the previous quarter at 7.90 in Q3 2023. This suggests that Mohawk Industries improved its ability to pay off its suppliers more frequently during this period. This increase may indicate better cash flow management or negotiation terms with suppliers.
Comparing Q4 2023 to the same quarter last year, the payables turnover ratio was 8.04. It shows a modest increase, indicating a relatively stable performance in managing payables year over year.
Analyzing the trend over the past eight quarters, the payables turnover ratios have generally been in an upward trajectory with some fluctuations. This suggests that Mohawk Industries has been more efficient in managing its accounts payable over time, which can positively impact cash flow and liquidity.
Overall, a higher payables turnover ratio signifies that the company is efficiently managing its payables, which could result in better relationships with suppliers and improved financial health. It is essential for investors and stakeholders to monitor this ratio to assess the company's ability to meet its short-term obligations effectively.
Peer comparison
Dec 31, 2023