Mohawk Industries Inc (MHK)
Quick ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cash | 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 |
| Receivables | US$ in thousands | — | — | — | — | — |
| Total current liabilities | US$ in thousands | 2,672,300 | 3,145,910 | 3,070,280 | 2,946,360 | 2,371,250 |
| Quick ratio | 0.25 | 0.20 | 0.22 | 0.20 | 0.57 |
December 31, 2024 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($666,600K
+ $—K
+ $—K)
÷ $2,672,300K
= 0.25
The quick ratio, also known as the acid-test ratio, is a liquidity ratio that measures a company's ability to meet its short-term obligations using its most liquid assets.
For Mohawk Industries Inc, the quick ratio has fluctuated over the past five years. In December 2020, the quick ratio was 0.57, indicating that the company had $0.57 in liquid assets for every $1 of current liabilities. However, this ratio decreased significantly to 0.20 by the end of December 2021, suggesting a potential strain on the company's ability to cover its short-term obligations with its liquid assets.
Subsequently, the quick ratio improved slightly to 0.22 by December 2022, before dropping back to 0.20 in December 2023. This may indicate ongoing challenges in managing short-term liquidity needs.
Fortunately, by December 2024, the quick ratio increased to 0.25, showing a slight improvement in the company's liquidity position. Overall, the trend in Mohawk Industries Inc's quick ratio reflects varying levels of liquidity over the years, with the company experiencing some fluctuations in its ability to quickly cover its short-term liabilities with liquid assets. Further monitoring and analysis of liquidity management may be necessary to ensure the company's financial health and stability.
Peer comparison
Dec 31, 2024