Mohawk Industries Inc (MHK)
Working capital turnover
| 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 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (ttm) | US$ in thousands | 11,069,310 | 11,102,500 | 11,254,030 | 11,474,710 | 11,672,300 | 11,785,660 | 11,686,880 | 11,483,230 | 11,131,870 | 11,030,910 | 10,787,740 | 9,889,430 | 9,505,800 | 9,288,550 | 9,244,070 | 9,776,680 | 9,939,820 | 9,963,930 | 9,986,970 | 9,980,730 |
| Total current assets | US$ in thousands | 5,604,220 | 5,504,320 | 5,851,330 | 6,061,140 | 5,895,100 | 5,854,330 | 5,940,730 | 5,564,740 | 5,238,360 | 5,646,080 | 5,950,560 | 5,566,010 | 5,363,650 | 5,151,990 | 4,746,000 | 4,613,030 | 4,429,460 | 4,727,780 | 4,808,320 | 4,688,960 |
| Total current liabilities | US$ in thousands | 3,145,910 | 3,188,570 | 3,287,940 | 3,318,370 | 3,070,280 | 3,904,750 | 3,924,380 | 3,871,630 | 2,946,360 | 2,901,740 | 3,178,890 | 3,007,290 | 2,371,250 | 2,387,110 | 1,872,230 | 2,871,280 | 2,712,580 | 3,114,700 | 3,705,790 | 3,434,250 |
| Working capital turnover | 4.50 | 4.79 | 4.39 | 4.18 | 4.13 | 6.05 | 5.80 | 6.78 | 4.86 | 4.02 | 3.89 | 3.86 | 3.18 | 3.36 | 3.22 | 5.61 | 5.79 | 6.18 | 9.06 | 7.95 |
December 31, 2023 calculation
Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $11,069,310K ÷ ($5,604,220K – $3,145,910K)
= 4.50
The working capital turnover ratio for Mohawk Industries, Inc. has exhibited some fluctuations over the past eight quarters. The ratio ranged from a low of 4.15 in Q4 2022 to a high of 6.82 in Q2 2022.
A high working capital turnover ratio indicates that the company is efficiently using its working capital to generate sales revenue. Conversely, a low ratio suggests that there may be inefficiencies or excess working capital tied up in the company's operations.
In the recent quarters, the working capital turnover ratio has been around 4.20 to 4.83, implying a moderate level of efficiency in utilizing the company's working capital. However, the significant drop in Q4 2022 to 4.15 and the subsequent increase to 6.82 in Q2 2022 suggests some volatility in the company's working capital management.
It would be advisable for stakeholders to closely monitor the working capital turnover ratio going forward to ensure that the company continues to effectively manage its working capital to support its operations and growth objectives.
Peer comparison
Dec 31, 2023