Mohawk Industries Inc (MHK)
Cash conversion cycle
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 113.17 | 118.31 | 116.16 | 111.39 | 110.59 | 107.54 | 110.10 | 113.97 | 115.96 | 121.38 | 121.40 | 110.95 | 110.06 | 103.52 | 98.67 | 99.43 | 98.05 | 95.78 | 100.53 | 112.13 |
| Days of sales outstanding (DSO) | days | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Number of days of payables | days | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Cash conversion cycle | days | 113.17 | 118.31 | 116.16 | 111.39 | 110.59 | 107.54 | 110.10 | 113.97 | 115.96 | 121.38 | 121.40 | 110.95 | 110.06 | 103.52 | 98.67 | 99.43 | 98.05 | 95.78 | 100.53 | 112.13 |
December 31, 2024 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 113.17 + — – —
= 113.17
The cash conversion cycle of Mohawk Industries Inc has shown fluctuations over the years, indicating changes in the efficiency of its working capital management.
From March 31, 2020, to June 30, 2021, there was a general downward trend in the cash conversion cycle, suggesting that the company was able to convert its investments in inventory and receivables back into cash more quickly. This could indicate effective inventory and receivables management during this period.
However, from September 30, 2021, to June 30, 2024, there was an upward trend in the cash conversion cycle, with fluctuations in between. This increase in the cash conversion cycle means that Mohawk Industries Inc took longer to convert its resources invested in inventory and receivables back into cash. It suggests potential inefficiencies in managing working capital during this timeframe.
Overall, the trend in the cash conversion cycle for Mohawk Industries Inc shows variability, indicating fluctuations in the company's ability to efficiently manage its working capital and convert it into cash. Further analysis of the underlying factors affecting inventory turnover, accounts receivable collection, and accounts payable payment periods would be necessary to understand the reasons behind these fluctuations and to identify potential areas for improvement in working capital management.
Peer comparison
Dec 31, 2024