Mohawk Industries Inc (MHK)
Cash ratio
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 642,550 | 518,452 | 570,933 | 572,858 | 509,623 | 326,971 | 223,986 | 230,559 | 268,895 | 1,128,030 | 753,677 | 557,262 | 768,625 | 781,238 | 737,712 | 263,086 | 134,785 | 111,303 | 128,096 | 105,668 |
| Short-term investments | US$ in thousands | 0 | 0 | 0 | 150,000 | 158,000 | 110,000 | 265,000 | 310,000 | 323,000 | 0 | 662,358 | 782,267 | 571,741 | 407,784 | — | — | 42,500 | — | — | — |
| 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 |
| Cash ratio | 0.20 | 0.16 | 0.17 | 0.22 | 0.22 | 0.11 | 0.12 | 0.14 | 0.20 | 0.39 | 0.45 | 0.45 | 0.57 | 0.50 | 0.39 | 0.09 | 0.07 | 0.04 | 0.03 | 0.03 |
December 31, 2023 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($642,550K
+ $0K)
÷ $3,145,910K
= 0.20
The cash ratio measures a company's ability to cover its short-term liabilities with its available cash and cash equivalents. It is calculated by dividing the total cash and cash equivalents by the total current liabilities.
Analyzing Mohawk Industries, Inc.'s cash ratio over the past eight quarters, we can see fluctuations in the company's liquidity position. The cash ratio ranged from a low of 0.24 in Q3 2022 to a high of 0.39 in Q1 2023 and Q4 2022.
A higher cash ratio indicates a stronger ability to cover short-term obligations, while a lower ratio suggests potential liquidity challenges. Mohawk Industries, Inc. showed an improvement in its cash ratio from Q3 2022 to Q1 2023, reaching a peak of 0.39. However, the ratio declined slightly in Q2 and Q3 2023 before increasing again in Q4 2023 to 0.37.
Overall, Mohawk Industries, Inc. has maintained a moderate to healthy cash ratio above 0.3 throughout the analyzed periods, indicating a satisfactory liquidity position to meet its short-term obligations. It is essential for investors and stakeholders to monitor this ratio along with other financial metrics to assess the company's financial health and ability to manage its current liabilities effectively.
Peer comparison
Dec 31, 2023