Mohawk Industries Inc (MHK)
Working capital 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 current assets | US$ in thousands | 4,340,100 | 5,604,220 | 5,895,100 | 5,238,360 | 5,363,650 |
| Total current liabilities | US$ in thousands | 2,672,300 | 3,145,910 | 3,070,280 | 2,946,360 | 2,371,250 |
| Working capital turnover | 6.50 | 4.53 | 4.15 | 4.89 | 3.19 |
December 31, 2024 calculation
Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $10,836,900K ÷ ($4,340,100K – $2,672,300K)
= 6.50
Working capital turnover is a financial ratio that measures how efficiently a company is utilizing its working capital to generate revenue. In the case of Mohawk Industries Inc, the working capital turnover has shown an improving trend over the past five years.
The working capital turnover ratio increased from 3.19 in December 31, 2020, to 6.50 in December 31, 2024. This indicates that Mohawk Industries Inc has been able to generate more revenue per dollar of working capital invested over the years.
A higher working capital turnover ratio suggests that the company is efficiently managing its working capital and using it effectively to support its operations. This could be attributed to better inventory management, streamlined accounts receivable collections, and efficient accounts payable practices.
Overall, the increasing trend in Mohawk Industries Inc's working capital turnover ratio reflects positively on the company's operational efficiency and indicates a strong ability to convert working capital into revenue.
Peer comparison
Dec 31, 2024