Mohawk Industries Inc (MHK)
Receivables turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 11,044,200 | 11,671,300 | 11,133,200 | 9,486,860 | 9,935,830 |
| Receivables | US$ in thousands | 1,874,660 | 1,904,790 | 1,839,980 | 1,709,490 | 1,526,620 |
| Receivables turnover | 5.89 | 6.13 | 6.05 | 5.55 | 6.51 |
December 31, 2023 calculation
Receivables turnover = Revenue ÷ Receivables
= $11,044,200K ÷ $1,874,660K
= 5.89
The receivables turnover ratio for Mohawk Industries, Inc. has exhibited some fluctuation over the past five years. The ratio decreased from 6.53 in 2019 to 5.59 in 2020, reflecting a decrease in the company's ability to convert its accounts receivable into cash during that period. However, the ratio rebounded in the following years, reaching 6.09 in 2021, 6.16 in 2022, and 5.94 in 2023.
The overall trend suggests that Mohawk Industries, Inc. has generally managed its accounts receivable efficiently, with the ratio consistently above 5 in the last five years. A high receivables turnover ratio indicates that the company is collecting outstanding receivables quickly, which is a positive sign of effective credit management and liquidity.
However, the slight decrease in the receivables turnover ratio in 2023 compared to the previous year may indicate a potential slowdown in collecting receivables during that period. It would be advisable for Mohawk Industries, Inc. to further analyze its receivables management processes to ensure timely collections and maintain a healthy cash flow position.
Peer comparison
Dec 31, 2023