Mohawk Industries Inc (MHK)
Pretax margin
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Earnings before tax but after interest (EBT) | US$ in thousands | -354,654 | 183,357 | 1,289,600 | 584,242 | 749,185 |
| Revenue | US$ in thousands | 11,044,200 | 11,671,300 | 11,133,200 | 9,486,860 | 9,935,830 |
| Pretax margin | -3.21% | 1.57% | 11.58% | 6.16% | 7.54% |
December 31, 2023 calculation
Pretax margin = EBT ÷ Revenue
= $-354,654K ÷ $11,044,200K
= -3.21%
The pretax margin of Mohawk Industries, Inc. has been fluctuating over the past five years. In 2019, the company achieved a pretax margin of 7.52%, indicating that for every dollar of revenue generated, the company retained $0.0752 before accounting for income taxes. However, the pretax margin declined to 6.12% in 2020 before experiencing a significant increase to 11.52% in 2021.
Nonetheless, the trend reversed in the following years as Mohawk Industries, Inc. reported a pretax margin of 1.57% in 2022, showing a significant decrease from the previous year. The trend continued in 2023 when the pretax margin turned negative at -3.18%, which might raise concerns over the company's ability to generate profits before taxes and its overall financial performance.
Considering the fluctuations in the pretax margin, investors and stakeholders may need to assess the factors contributing to the negative trend in recent years and evaluate the company's strategies and operational efficiency to address the declining profitability.
Peer comparison
Dec 31, 2023