Mohawk Industries Inc (MHK)
Profitability ratios
Return on sales
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross profit margin | 24.48% | 23.61% | 23.49% | 24.27% | 25.22% | 26.53% | 27.81% | 28.56% | 29.36% | 29.64% | 29.09% | 26.35% | 25.57% | 24.93% | 24.89% | 27.28% | 26.92% | 27.09% | 27.32% | 27.64% |
| Operating profit margin | -2.60% | -3.55% | -1.47% | 0.43% | 2.09% | 3.70% | 11.14% | 11.65% | 11.99% | 12.37% | 11.75% | 8.11% | 6.69% | 5.47% | 5.25% | 8.32% | 8.32% | 8.89% | 9.34% | 9.94% |
| Pretax margin | -3.20% | -4.25% | -2.18% | -0.12% | 1.57% | 3.28% | 10.70% | 11.25% | 11.58% | 12.00% | 11.37% | 7.60% | 6.15% | 5.00% | 4.26% | 7.44% | 7.54% | 7.96% | 8.93% | 9.50% |
| Net profit margin | -3.97% | -4.91% | -2.84% | -1.22% | 0.22% | 1.53% | 8.44% | 9.07% | 9.28% | 9.90% | 9.51% | 6.49% | 5.42% | 5.73% | 5.22% | 7.50% | 7.49% | 7.11% | 7.81% | 7.76% |
Over the past eight quarters, Mohawk Industries, Inc. has experienced a declining trend in its profitability ratios. The gross profit margin has decreased from 28.40% in Q1 2022 to 24.33% in Q4 2023, indicating a reduction in the company's ability to generate profits after accounting for the cost of goods sold.
Similarly, the operating profit margin has declined from 11.59% in Q1 2022 to 5.30% in Q4 2023, reflecting a decrease in the company's profitability from its core operations. This trend suggests that Mohawk Industries may be facing challenges in controlling its operating expenses or in improving the efficiency of its operations.
The pretax margin has also shown a downward trajectory, dropping from 11.19% in Q1 2022 to -3.18% in Q4 2023. This indicates that the company's profitability before accounting for taxes has deteriorated significantly over the analyzed period.
Furthermore, the net profit margin, which is a measure of the company's overall profitability after all expenses and taxes have been deducted, has decreased from 9.02% in Q1 2022 to -3.95% in Q4 2023. This trend suggests that Mohawk Industries is facing challenges in generating profits on its bottom line.
In conclusion, the declining trend in gross profit margin, operating profit margin, pretax margin, and net profit margin indicates potential profitability challenges for Mohawk Industries, Inc. The company may need to focus on cost controls, operational efficiency, and strategic initiatives to improve its profitability in the future.
Return on investment
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | -2.12% | -3.00% | -1.14% | 0.33% | 1.73% | 3.16% | 8.86% | 9.30% | 9.39% | 9.44% | 8.57% | 5.61% | 4.44% | 3.69% | 3.63% | 6.14% | 6.18% | 6.61% | 6.76% | 7.29% |
| Return on assets (ROA) | -3.24% | -4.15% | -2.19% | -0.95% | 0.18% | 1.31% | 6.71% | 7.24% | 7.26% | 7.56% | 6.94% | 4.49% | 3.60% | 3.86% | 3.61% | 5.53% | 5.56% | 5.29% | 5.65% | 5.69% |
| Return on total capital | -2.97% | -4.44% | -1.73% | 0.42% | 2.36% | 4.94% | 13.47% | 14.36% | 13.31% | 13.24% | 12.27% | 7.94% | 5.85% | 4.90% | 4.15% | 8.20% | 8.20% | 9.07% | 10.42% | 10.92% |
| Return on equity (ROE) | -5.77% | -7.51% | -3.89% | -1.73% | 0.32% | 2.31% | 11.46% | 12.58% | 12.27% | 12.49% | 11.71% | 7.56% | 6.04% | 6.52% | 6.09% | 9.35% | 9.17% | 9.14% | 9.99% | 10.23% |
Based on the provided data, the profitability ratios of Mohawk Industries, Inc. show some fluctuations over the past eight quarters.
Operating return on assets (Operating ROA) indicates how efficiently the company generates operating income from its assets. Mohawk's Operating ROA has ranged between 3.63% to 8.86% over the period, with a noticeable decline in recent quarters from levels above 8% to around 4%.
Return on assets (ROA) measures the company's ability to generate profit from its total assets. Mohawk's ROA has been negative in the last four quarters, indicating that the company has not been profitable during this period.
Return on total capital reflects the overall effectiveness of the company in generating returns for both debt and equity holders. Mohawk's Return on total capital has declined gradually from around 12% to below 6% in the most recent quarter, suggesting a reduction in the company's ability to generate returns on its total capital.
Return on equity (ROE) measures the profitability of the company from the perspective of shareholders. Mohawk's ROE has shown a downward trend from levels over 12% to negative figures in the last four quarters, indicating a decline in the company's ability to generate returns for its shareholders.
Overall, the profitability ratios of Mohawk Industries, Inc. reflect a challenging period with decreasing profitability and efficiency in generating returns from assets, total capital, and equity. It is crucial for the company to address these declining trends to improve overall financial performance and provide better returns for its stakeholders.