Mohawk Industries Inc (MHK)
Return on equity (ROE)
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Net income (ttm) | US$ in thousands | -439,516 | -545,548 | -319,058 | -139,844 | 25,247 | 180,880 | 985,827 | 1,041,681 | 1,033,159 | 1,092,292 | 1,026,431 | 641,889 | 515,596 | 532,041 | 482,442 | 733,140 | 744,211 | 708,883 | 780,378 | 774,523 |
| Total stockholders’ equity | US$ in thousands | 7,623,070 | 7,265,520 | 8,206,110 | 8,099,470 | 8,011,510 | 7,818,750 | 8,600,620 | 8,280,970 | 8,421,420 | 8,745,520 | 8,767,120 | 8,492,430 | 8,534,320 | 8,160,660 | 7,918,810 | 7,841,370 | 8,119,840 | 7,758,770 | 7,815,070 | 7,570,800 |
| 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% |
December 31, 2023 calculation
ROE = Net income (ttm) ÷ Total stockholders’ equity
= $-439,516K ÷ $7,623,070K
= -5.77%
Mohawk Industries, Inc.'s return on equity (ROE) has shown a declining trend over the past eight quarters. The ROE was negative in the most recent quarter at -5.77%, indicating that the company generated a net loss relative to its equity. This follows a similar negative trend in the previous quarters, with ROE figures of -7.51%, -3.89%, and -1.73% in the preceding periods.
The positive ROE figures in the earlier quarters of 2022, at 0.32%, 2.31%, 11.46%, and 12.58%, suggest that Mohawk Industries had been more profitable and efficient in generating returns for its shareholders during that period. However, the recent decrease in ROE indicates a decline in profitability and efficiency in utilizing shareholder equity to generate earnings.
This downward trend in ROE raises concerns about the company's ability to generate profits from the shareholders' investments. Further analysis of the company's financial performance, operational efficiency, and strategic initiatives may be necessary to identify the root causes of the declining ROE and to implement appropriate measures for improvement.
Peer comparison
Dec 31, 2023