Mohawk Industries Inc (MHK)
Return on assets (ROA)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | -439,516 | 25,247 | 1,033,160 | 515,595 | 744,211 |
| Total assets | US$ in thousands | 13,559,900 | 14,120,400 | 14,224,500 | 14,327,800 | 13,386,700 |
| ROA | -3.24% | 0.18% | 7.26% | 3.60% | 5.56% |
December 31, 2023 calculation
ROA = Net income ÷ Total assets
= $-439,516K ÷ $13,559,900K
= -3.24%
Mohawk Industries, Inc.'s return on assets (ROA) has shown a declining trend over the past five years. In 2019, the ROA was at its peak at 5.56%, indicating that the company was generating a healthy return on its assets. However, the ROA decreased to 3.60% in 2020 and further declined to 7.26% in 2021. Notably, there was a significant drop in ROA to 0.18% in 2022, which was followed by a negative ROA of -3.24% in 2023.
The negative ROA in 2023 suggests that Mohawk Industries, Inc. is experiencing challenges in generating profits from its assets, possibly due to declining profitability or inefficient asset utilization. Investors and stakeholders may be concerned about the company's ability to effectively deploy its assets to generate returns in the current economic environment.
Further analysis and investigation into the company's financial performance, profitability, and asset management strategies are recommended to understand the factors contributing to the decline in ROA and to make informed decisions regarding the company's future prospects.
Peer comparison
Dec 31, 2023