Mohawk Industries Inc (MHK)
Working capital 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 |
| Total current assets | US$ in thousands | 5,604,220 | 5,895,100 | 5,238,360 | 5,363,650 | 4,429,460 |
| Total current liabilities | US$ in thousands | 3,145,910 | 3,070,280 | 2,946,360 | 2,371,250 | 2,712,580 |
| Working capital turnover | 4.49 | 4.13 | 4.86 | 3.17 | 5.79 |
December 31, 2023 calculation
Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $11,044,200K ÷ ($5,604,220K – $3,145,910K)
= 4.49
The working capital turnover for Mohawk Industries, Inc. has fluctuated over the past five years, ranging from a low of 3.19 in 2020 to a high of 5.81 in 2019. In general, a higher working capital turnover ratio indicates that the company is efficiently utilizing its working capital to generate revenue.
The significant increase in the ratio from 2020 to 2021 suggests that Mohawk Industries improved its management of working capital during that period. However, the subsequent decrease in 2022 followed by an increase in 2023 indicates some volatility in the company's working capital efficiency.
Overall, the average working capital turnover ratio of 4.51 over the five-year period indicates that Mohawk Industries has been effectively managing its working capital to support its operations and generate sales. The company should continue monitoring and optimizing its working capital turnover to ensure sustainable operational efficiency and profitability.
Peer comparison
Dec 31, 2023