Mohawk Industries Inc (MHK)
Return on equity (ROE)
| 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 stockholders’ equity | US$ in thousands | 64,200 | 7,623,070 | 8,017,910 | 8,428,220 | 8,541,160 |
| ROE | 806.39% | -5.77% | 0.31% | 12.26% | 6.04% |
December 31, 2024 calculation
ROE = Net income ÷ Total stockholders’ equity
= $517,700K ÷ $64,200K
= 806.39%
Based on the provided data, Mohawk Industries Inc's return on equity (ROE) has experienced significant fluctuations over the past five years.
In December 31, 2020, the ROE was 6.04%, indicating a moderate level of profitability generated from shareholders' equity investments. The following year, the ROE doubled to 12.26%, suggesting an improvement in the company's ability to generate profits from shareholder equity.
However, in December 31, 2022, there was a sharp decline in ROE to 0.31%, indicating a significant decrease in profitability relative to the equity invested. The trend worsened in December 31, 2023, with a negative ROE of -5.77%, indicating that the company did not generate profits sufficient to cover the shareholders' equity.
The most recent data point shows a dramatic increase in ROE to 806.39% by December 31, 2024, which appears unusually high and may be attributed to specific events or accounting anomalies.
Overall, the fluctuating trend in Mohawk Industries Inc's ROE suggests varying levels of profitability and efficiency in utilizing equity investments over the analyzed period, warranting further investigation to understand the underlying reasons behind these drastic changes.
Peer comparison
Dec 31, 2024