Mohawk Industries Inc (MHK)
Cash conversion cycle
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 112.58 | 110.55 | 115.96 | 110.06 | 98.05 |
| Days of sales outstanding (DSO) | days | — | — | — | — | — |
| Number of days of payables | days | — | — | — | — | — |
| Cash conversion cycle | days | 112.58 | 110.55 | 115.96 | 110.06 | 98.05 |
December 31, 2024 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 112.58 + — – —
= 112.58
The cash conversion cycle of Mohawk Industries Inc has shown a fluctuating trend over the past five years. In December 2020, the company's cash conversion cycle stood at 98.05 days, indicating that it took approximately 98 days for Mohawk to convert its investments in inventory and accounts receivable into cash.
By December 2021, the cash conversion cycle had increased to 110.06 days, suggesting a slight delay in the company's cash conversion process. However, in the following year, December 2022, the cycle further extended to 115.96 days, indicating that Mohawk took longer to convert its investments into cash compared to the previous year.
In December 2023, there was a slight improvement in the cash conversion cycle, which decreased to 110.55 days. Nevertheless, by December 2024, the cycle increased once again to 112.58 days, signaling a longer period for Mohawk to convert its investments into cash compared to the previous year.
Overall, the fluctuating trend in Mohawk Industries Inc's cash conversion cycle over the past five years may suggest changes in the company's inventory management, accounts receivable collection, and payment practices, impacting its operating efficiency and working capital management.
Peer comparison
Dec 31, 2024