Mohawk Industries Inc (MHK)
Profitability ratios
Return on sales
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Gross profit margin | 24.80% | 24.33% | 25.08% | 29.18% | 25.45% |
| Operating profit margin | 6.41% | -2.58% | 7.94% | 6.75% | 0.31% |
| Pretax margin | 5.96% | -3.18% | 1.57% | 11.52% | 6.12% |
| Net profit margin | 4.78% | -3.95% | 0.22% | 9.22% | 5.40% |
Based on the provided data for Mohawk Industries Inc, we can observe the following trends in profitability ratios over the five-year period from 2020 to 2024:
1. Gross Profit Margin:
- The gross profit margin has shown some fluctuations but has generally remained relatively stable, ranging from 24.33% to 29.18%.
- The company maintained a gross profit margin above 25% in most years, indicating efficient production and pricing strategies.
2. Operating Profit Margin:
- Mohawk Industries experienced a significant improvement in its operating profit margin from 2020 to 2022, reaching a high of 7.94%.
- However, there was a notable decline in 2023 when the operating profit margin fell to -2.58%, suggesting operational challenges or increased expenses.
- The margin improved again in 2024, reaching 6.41%.
3. Pretax Margin:
- The pretax margin exhibited volatility over the period, ranging from -3.18% to 11.52%.
- The company's profitability before taxes improved significantly in 2021 but deteriorated in 2022 and 2023 before recovering to 5.96% in 2024.
4. Net Profit Margin:
- The net profit margin, representing the bottom line profitability, showed fluctuations throughout the years.
- Mohawk Industries experienced a decline in net profit margin in 2023 (-3.95%), indicating challenges in generating profits after accounting for all expenses.
- However, the margin improved in 2024 to 4.78%, suggesting a recovery in profitability.
In conclusion, while Mohawk Industries has maintained a relatively stable gross profit margin, the company experienced fluctuations and challenges in its operating, pretax, and net profit margins over the five-year period. Monitoring and addressing the factors impacting these profitability ratios will be crucial for the company's financial health and long-term success.
Return on investment
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 5.44% | -2.12% | 6.60% | 5.31% | 0.20% |
| Return on assets (ROA) | 4.05% | -3.24% | 0.18% | 7.26% | 3.60% |
| Return on total capital | 1,081.78% | -3.78% | 2.94% | 15.98% | 7.46% |
| Return on equity (ROE) | 806.39% | -5.77% | 0.31% | 12.26% | 6.04% |
Based on the provided data for Mohawk Industries Inc, the profitability ratios reflect fluctuating performance over the years.
1. Operating return on assets (Operating ROA) has shown an increasing trend from 0.20% in December 31, 2020 to 6.60% in December 31, 2022. However, there was a decline to -2.12% in December 31, 2023 before recovering to 5.44% in December 31, 2024.
2. Return on assets (ROA) witnessed a rise from 3.60% in December 31, 2020 to 7.26% in December 31, 2021. Subsequently, the ratio fluctuated, reaching a low of -3.24% in December 31, 2023 before recovering to 4.05% in December 31, 2024.
3. Return on total capital experienced significant variation, escalating from 7.46% in December 31, 2020 to a substantial 1,081.78% in December 31, 2024. However, there were periods of decline and negative returns in between.
4. Return on equity (ROE) showed a similar pattern to return on total capital, with an increase from 6.04% in December 31, 2020 to a remarkable 806.39% in December 31, 2024. Like other ratios, there were instances of negative returns during the period.
In summary, Mohawk Industries Inc's profitability ratios have demonstrated fluctuations over the years, with varying levels of performance in generating profits relative to assets, capital employed, and equity.