Mohawk Industries Inc (MHK)
Activity ratios
Short-term
Turnover ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 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 |
| Receivables turnover | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Payables turnover | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Working capital turnover | 3.84 | 3.79 | 4.02 | 4.23 | 4.53 | 4.83 | 4.42 | 4.20 | 4.15 | 6.08 | 5.83 | 6.82 | 4.89 | 4.04 | 3.91 | 3.88 | 3.19 | 3.38 | 3.23 | 5.63 |
Based on the activity ratios provided for Mohawk Industries Inc, we can draw several insights:
1. Inventory Turnover: The company's inventory turnover has ranged from 3.01 to 3.81 over the past few years, indicating that Mohawk is generally efficient in managing its inventory levels. A higher turnover ratio suggests that the company is selling its inventory faster, which is indicative of good inventory management.
2. Receivables Turnover: Unfortunately, data on receivables turnover is unavailable for the specified periods. This ratio could provide insights into how quickly the company is collecting payments from its customers. Without this data, it is challenging to assess the efficiency of Mohawk's accounts receivable management.
3. Payables Turnover: Similar to receivables turnover, no information is provided on payables turnover for the given periods. This ratio would have indicated how quickly the company is paying off its suppliers, providing insights into its liquidity and payment practices.
4. Working Capital Turnover: The working capital turnover for Mohawk has fluctuated between 3.19 and 6.82. A higher turnover ratio indicates that the company is effectively utilizing its working capital to generate sales revenue. The increasing trend in the ratio suggests that Mohawk has been improving its efficiency in converting working capital into sales over time.
In conclusion, Mohawk Industries Inc's inventory turnover and working capital turnover ratios indicate efficient management of inventory and working capital, respectively. However, the lack of data on receivables and payables turnover limits a comprehensive assessment of the company's overall efficiency in managing its assets and liabilities.
Average number of days
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 113.17 | 118.31 | 116.16 | 111.39 | 110.59 | 107.54 | 110.10 | 113.97 | 115.96 | 121.38 | 121.40 | 110.95 | 110.06 | 103.52 | 98.67 | 99.43 | 98.05 | 95.78 | 100.53 | 112.13 |
| Days of sales outstanding (DSO) | days | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Number of days of payables | days | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
Based on the provided data, here is an analysis of Mohawk Industries Inc's activity ratios:
1. Days of Inventory on Hand (DOH):
- Mohawk Industries Inc's DOH fluctuated over the period from March 31, 2020, to December 31, 2024, ranging from 95.78 days to 121.40 days.
- The trend shows some variability but generally indicates that Mohawk held inventory for approximately 100 to 120 days on average during the period.
- A higher DOH figure could suggest either excess inventory or slower inventory turnover.
2. Days of Sales Outstanding (DSO):
- The data provided did not include information on Mohawk Industries Inc's DSO, indicating a lack of information to evaluate the efficiency of the company's accounts receivable management.
- DSO is a critical metric that helps in assessing how quickly a company collects payments from its customers.
3. Number of Days of Payables:
- Similarly to DSO, data on the number of days of payables was not available, making it challenging to evaluate Mohawk Industries Inc's payment practices to suppliers.
- Examining payables turnover could provide insights into the company's liquidity position and supplier relationship management.
In conclusion, while the data on Mohawk Industries Inc's DOH was provided, the absence of information on DSO and payables turnover limits a comprehensive assessment of the company's efficiency in managing its working capital and operational cycle.
Long-term
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Fixed asset turnover | — | — | — | — | — | 2.15 | 2.28 | 2.33 | 2.32 | 2.41 | 2.56 | 2.54 | 2.23 | 2.30 | 2.24 | 2.08 | 2.08 | 2.12 | 2.09 | 2.19 |
| Total asset turnover | 0.85 | 0.81 | 0.82 | 0.81 | 0.82 | 0.85 | 0.78 | 0.78 | 0.83 | 0.86 | 0.80 | 0.80 | 0.79 | 0.77 | 0.73 | 0.70 | 0.67 | 0.68 | 0.69 | 0.74 |
Based on the provided data, let's analyze Mohawk Industries Inc's long-term activity ratios:
1. Fixed Asset Turnover:
- The fixed asset turnover ratio measures how efficiently a company is utilizing its fixed assets to generate sales.
- Mohawk Industries Inc's fixed asset turnover has been quite stable over the years, ranging from 2.08 to 2.56.
- The trend shows a slight increase from 2.08 in December 2020 to 2.56 in June 2022, indicating an improvement in efficiency in utilizing fixed assets.
- However, there was a slight decline from 2.56 in June 2022 to 2.15 in September 2023 before stabilizing around 2.3 in the following periods.
2. Total Asset Turnover:
- The total asset turnover ratio measures how efficiently a company is using its assets to generate revenue.
- Mohawk Industries Inc's total asset turnover ratio has fluctuated over the years, ranging from 0.67 to 0.85.
- The ratio has shown some volatility, with peaks around 0.85 in September 2023 and December 2024.
- Overall, the company's total asset turnover ratio has shown a slight increase trend from 0.67 in December 2020 to 0.85 in December 2024, indicating improved efficiency in generating revenue from total assets.
In conclusion, Mohawk Industries Inc has shown relatively stable and improving efficiency in utilizing both fixed assets and total assets to generate sales revenue over the periods analyzed. The company's ability to generate revenue from its assets has exhibited positive trends, albeit with some fluctuations, suggesting effective management of its asset base for revenue generation.