Mohawk Industries Inc (MHK)
Current ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Total current assets | US$ in thousands | 5,604,220 | 5,895,100 | 5,238,360 | 5,363,650 | 4,429,460 |
| Total current liabilities | US$ in thousands | 3,145,910 | 3,070,280 | 2,946,360 | 2,371,250 | 2,712,580 |
| Current ratio | 1.78 | 1.92 | 1.78 | 2.26 | 1.63 |
December 31, 2023 calculation
Current ratio = Total current assets ÷ Total current liabilities
= $5,604,220K ÷ $3,145,910K
= 1.78
The current ratio of Mohawk Industries, Inc. has demonstrated some fluctuations over the past five years. The ratio decreased from 2.26 in 2020 to 1.63 in 2019, indicating a decrease in short-term liquidity or the company's ability to cover its current liabilities with its current assets. However, in 2022, there was a notable improvement in the current ratio to 1.92, suggesting a strengthening of the company's short-term liquidity position.
The current ratio for 2023 stands at 1.78, reflecting a slight decrease compared to the previous year. While the current ratio of 1.78 indicates that Mohawk Industries, Inc. has $1.78 in current assets for every $1 of current liabilities, it is important to note that a ratio above 1 signifies that the company can meet its short-term obligations.
Overall, Mohawk Industries, Inc. has maintained current ratios above 1 over the past five years, suggesting that the company has generally been able to manage its short-term liquidity effectively. However, further analysis of the components of current assets and liabilities would provide deeper insights into the company's financial health and its ability to meet its short-term obligations.
Peer comparison
Dec 31, 2023