Mohawk Industries Inc (MHK)
Cash ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 666,600 | 642,550 | 509,623 | 268,895 | 768,625 |
| Short-term investments | US$ in thousands | — | 0 | 158,000 | 323,000 | 571,741 |
| Total current liabilities | US$ in thousands | 2,672,300 | 3,145,910 | 3,070,280 | 2,946,360 | 2,371,250 |
| Cash ratio | 0.25 | 0.20 | 0.22 | 0.20 | 0.57 |
December 31, 2024 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($666,600K
+ $—K)
÷ $2,672,300K
= 0.25
The cash ratio of Mohawk Industries Inc has fluctuated over the past five years. As of December 31, 2020, the cash ratio stood at 0.57, indicating that the company had $0.57 in cash and cash equivalents for every $1 of current liabilities. However, by the end of 2021, the cash ratio decreased to 0.20, suggesting a lower level of liquidity compared to the previous year.
In 2022, there was a slight improvement in the cash ratio to 0.22, although it remained below the 2020 level. The ratio then dipped back to 0.20 by the end of 2023, indicating a potential liquidity challenge.
By the end of 2024, the cash ratio saw a modest increase to 0.25, which may suggest a slight improvement in the company's ability to cover its short-term liabilities with cash on hand. Overall, the fluctuating trend in the cash ratio implies varying levels of liquidity and the need for careful monitoring of the company's cash management practices.
Peer comparison
Dec 31, 2024