Mohawk Industries Inc (MHK)
Total asset turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 10,836,900 | 11,135,100 | 11,737,100 | 11,200,600 | 9,552,200 |
| Total assets | US$ in thousands | 12,778,600 | 13,559,900 | 14,120,400 | 14,224,500 | 14,327,800 |
| Total asset turnover | 0.85 | 0.82 | 0.83 | 0.79 | 0.67 |
December 31, 2024 calculation
Total asset turnover = Revenue ÷ Total assets
= $10,836,900K ÷ $12,778,600K
= 0.85
The total asset turnover ratio measures a company's ability to generate sales revenue from its total assets. In the case of Mohawk Industries Inc, the trend in total asset turnover has been generally increasing over the last five years. From 0.67 in December 2020, it has risen to 0.85 by December 2024. This indicates that the company is becoming more efficient in utilizing its assets to generate sales.
A higher total asset turnover ratio typically signifies better asset utilization and operational efficiency. In Mohawk Industries Inc's case, the increasing trend suggests ongoing improvements in the company's operational effectiveness and revenue generation capabilities. It indicates that Mohawk is gradually leveraging its assets more effectively to drive sales, which can be a positive indicator of business performance and potential profitability.
Peer comparison
Dec 31, 2024