Mohawk Industries Inc (MHK)
Cash conversion cycle
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 84.46 | 82.00 | 86.15 | 90.19 | 88.00 | 92.36 | 98.28 | 89.41 | 88.00 | 82.70 | 78.65 | 78.98 | 77.43 | 75.17 | 78.41 | 87.58 | 89.46 | 92.23 | 94.27 | 93.77 |
| Days of sales outstanding (DSO) | days | 61.82 | 63.88 | 67.69 | 65.28 | 59.56 | 62.04 | 65.77 | 64.99 | 60.33 | 62.22 | 68.27 | 66.95 | 65.64 | 67.23 | 62.64 | 61.40 | 56.06 | 65.47 | 66.50 | 63.76 |
| Number of days of payables | days | 34.35 | 35.22 | 38.95 | — | 34.46 | — | — | — | 45.21 | — | — | — | — | — | — | — | — | — | — | — |
| Cash conversion cycle | days | 111.92 | 110.66 | 114.88 | 155.47 | 113.10 | 154.40 | 164.05 | 154.40 | 103.12 | 144.93 | 146.92 | 145.92 | 143.07 | 142.41 | 141.05 | 148.99 | 145.52 | 157.70 | 160.76 | 157.54 |
December 31, 2023 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 84.46 + 61.82 – 34.35
= 111.92
The cash conversion cycle of Mohawk Industries, Inc. has shown some fluctuations over the past eight quarters. In Q1 2022, the company had the shortest cash conversion cycle at 118.36 days, indicating efficient management of cash, inventory, and receivables. However, the cash conversion cycle increased in the following quarters, peaking at 132.13 days in Q3 2022 before showing some improvement in the last two quarters of 2023.
Overall, Mohawk Industries, Inc. has generally been able to convert its investments in inventory and receivables back into cash within a reasonable timeframe, albeit with some variability. This metric is important as it provides insights into the efficiency of the company's working capital management and its ability to generate cash flow from its operational activities.
Peer comparison
Dec 31, 2023