Mohawk Industries Inc (MHK)
Quick 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 | 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 | — | — | — |
| Receivables | US$ in thousands | 1,874,660 | 1,943,150 | 2,087,070 | 2,052,360 | 1,904,790 | 2,003,260 | 2,105,810 | 2,044,700 | 1,839,980 | 1,880,480 | 2,017,620 | 1,813,860 | 1,709,490 | 1,710,960 | 1,586,400 | 1,644,750 | 1,526,620 | 1,787,160 | 1,819,470 | 1,743,580 |
| 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 |
| Quick ratio | 0.80 | 0.77 | 0.81 | 0.84 | 0.84 | 0.62 | 0.66 | 0.67 | 0.83 | 1.04 | 1.08 | 1.05 | 1.29 | 1.21 | 1.24 | 0.66 | 0.63 | 0.61 | 0.53 | 0.54 |
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, also known as the acid-test ratio, measures a company's ability to meet its short-term obligations using its most liquid assets. A quick ratio equal to or greater than 1 indicates that a company has enough liquid assets to cover its current liabilities.
Analyzing Mohawk Industries, Inc.'s quick ratio over the past eight quarters reveals fluctuations in its short-term liquidity position. The quick ratio ranged from 0.76 to 1.01 during this period, with Q1 2023 and Q4 2022 showing the highest ratios of 1.00 and 1.01, respectively, suggesting a strong ability to meet short-term obligations.
However, there were relatively lower quick ratios in Q3 2022 (0.79) and Q2 2022 (0.79), indicating a slight liquidity strain during those quarters. It is important to note that a quick ratio slightly below 1 does not necessarily signal financial distress but may warrant closer monitoring of liquidity levels.
Overall, Mohawk Industries, Inc.'s quick ratio has exhibited some variability but generally remained close to or above the desirable benchmark of 1 over the past two years. Further analysis in conjunction with other liquidity and financial metrics would provide a more holistic view of the company's short-term liquidity position.
Peer comparison
Dec 31, 2023