Mohawk Industries Inc (MHK)
Operating return on assets (Operating ROA)
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Operating income | US$ in thousands | 694,700 | -287,808 | 931,602 | 755,534 | 29,246 |
| Total assets | US$ in thousands | 12,778,600 | 13,559,900 | 14,120,400 | 14,224,500 | 14,327,800 |
| Operating ROA | 5.44% | -2.12% | 6.60% | 5.31% | 0.20% |
December 31, 2024 calculation
Operating ROA = Operating income ÷ Total assets
= $694,700K ÷ $12,778,600K
= 5.44%
Operating ROA is a key financial metric that indicates how efficiently a company is utilizing its assets to generate operating profits. Between December 31, 2020, and December 31, 2024, Mohawk Industries Inc's operating ROA exhibited fluctuations. The company's operating ROA increased significantly from 0.20% in 2020 to 6.60% in 2022, indicating a substantial improvement in its operational efficiency and profitability.
However, in 2023, Mohawk Industries Inc experienced a decline in operating ROA to -2.12%, signaling a period of less effective asset utilization leading to operating losses. The company managed to recover in the following year, with operating ROA increasing to 5.44% by December 31, 2024.
Overall, Mohawk Industries Inc's operating ROA performance demonstrates both strengths and weaknesses in asset management and operational profitability over the analyzed period. Reaching a peak in 2022, the company faced challenges in 2023 but managed to partially recover by 2024, showcasing a dynamic financial performance trajectory.
Peer comparison
Dec 31, 2024