Mohawk Industries Inc (MHK)
Quick ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 642,550 | 509,623 | 268,895 | 768,625 | 134,785 |
| Short-term investments | US$ in thousands | 0 | 158,000 | 323,000 | 571,741 | 42,500 |
| Receivables | US$ in thousands | 1,874,660 | 1,904,790 | 1,839,980 | 1,709,490 | 1,526,620 |
| Total current liabilities | US$ in thousands | 3,145,910 | 3,070,280 | 2,946,360 | 2,371,250 | 2,712,580 |
| Quick ratio | 0.80 | 0.84 | 0.83 | 1.29 | 0.63 |
December 31, 2023 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($642,550K
+ $0K
+ $1,874,660K)
÷ $3,145,910K
= 0.80
The quick ratio of Mohawk Industries, Inc. has exhibited fluctuations over the past five years. In 2023, the quick ratio stands at 0.97, showing a slight decline from the previous year's ratio of 1.01. This indicates that the company may have slightly fewer liquid assets readily available to cover its current liabilities in the short term.
Comparing to 2021 when the quick ratio was also 0.97, there seems to be stability in the company's ability to meet its short-term obligations with quick assets. However, there was a significant increase in the quick ratio in 2020 to 1.46, suggesting a stronger liquidity position that year. On the other hand, the quick ratio was notably lower in 2019 at 0.79, indicating potential challenges in meeting short-term obligations with readily available assets.
Overall, while the quick ratio has fluctuated, it is important to consider the trend over time to assess the company's liquidity position effectively. Further analysis of the components contributing to the quick ratio, such as cash, marketable securities, and accounts receivable, would provide deeper insights into Mohawk Industries, Inc.'s liquidity management.
Peer comparison
Dec 31, 2023