Mohawk Industries Inc (MHK)
Return on equity (ROE)
| 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 stockholders’ equity | US$ in thousands | 7,623,070 | 8,011,510 | 8,421,420 | 8,534,320 | 8,119,840 |
| ROE | -5.77% | 0.32% | 12.27% | 6.04% | 9.17% |
December 31, 2023 calculation
ROE = Net income ÷ Total stockholders’ equity
= $-439,516K ÷ $7,623,070K
= -5.77%
The return on equity (ROE) for Mohawk Industries, Inc. has fluctuated over the past five years. In 2023, the ROE was -5.77%, indicating a negative return on shareholders' equity. This is a concerning sign as it suggests the company did not generate earnings sufficient to cover the shareholders' equity.
In 2022, the ROE improved slightly to 0.32%, but it remained very low, reflecting minimal profitability in relation to shareholders' equity.
The highest ROE was recorded in 2021 at 12.27%, signaling a significant return on equity for that year. This indicates that the company was able to generate substantial profits relative to the shareholders' investment.
In the previous years, the ROE was 6.04% in 2020 and 9.17% in 2019, showing moderate returns on equity during those periods.
Overall, the negative ROE in 2023 raises concerns about the company's profitability and its ability to generate returns for shareholders. Further analysis of the company's financial performance and operations would be needed to determine the factors contributing to the fluctuating ROE.
Peer comparison
Dec 31, 2023