Mohawk Industries Inc (MHK)
Return on assets (ROA)
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 517,700 | -439,516 | 25,247 | 1,033,160 | 515,595 |
| Total assets | US$ in thousands | 12,778,600 | 13,559,900 | 14,120,400 | 14,224,500 | 14,327,800 |
| ROA | 4.05% | -3.24% | 0.18% | 7.26% | 3.60% |
December 31, 2024 calculation
ROA = Net income ÷ Total assets
= $517,700K ÷ $12,778,600K
= 4.05%
Based on the provided data, Mohawk Industries Inc's return on assets (ROA) has fluctuated over the years:
1. December 31, 2020: ROA was 3.60%. This indicates that for every dollar of assets, the company generated $0.036 in net income.
2. December 31, 2021: ROA improved significantly to 7.26%. This suggests that the company was more efficient in generating profit from its assets during this period.
3. December 31, 2022: ROA dropped sharply to 0.18%. This significant decrease could indicate potential challenges in asset utilization and profitability.
4. December 31, 2023: ROA turned negative to -3.24%. A negative ROA implies that the company incurred losses greater than the value of its assets, which is a concerning trend.
5. December 31, 2024: ROA recovered to 4.05%. This improvement suggests that the company may have taken corrective measures to enhance its asset efficiency and profitability.
In summary, Mohawk Industries Inc's ROA has exhibited volatility over the years, with a mix of positive and negative trends. It is crucial for the company to focus on optimizing asset management strategies to consistently improve its ROA and overall financial performance.
Peer comparison
Dec 31, 2024