Mohawk Industries Inc (MHK)
Return on total capital
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 694,500 | -287,808 | 235,831 | 1,347,240 | 636,753 |
| Long-term debt | US$ in thousands | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 64,200 | 7,623,070 | 8,017,910 | 8,428,220 | 8,541,160 |
| Return on total capital | 1,081.78% | -3.78% | 2.94% | 15.98% | 7.46% |
December 31, 2024 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $694,500K ÷ ($—K + $64,200K)
= 1,081.78%
Return on total capital is a key financial metric that indicates the efficiency with which Mohawk Industries Inc utilizes all of its capital resources to generate profits.
In 2020, the return on total capital stood at 7.46%, showing that for every dollar of capital invested, the company generated a return of 7.46 cents.
By the end of 2021, the return on total capital significantly improved to 15.98%, indicating improved efficiency in capital deployment and higher profitability.
However, in 2022, the return on total capital dropped to 2.94%, suggesting a decrease in the company's ability to generate profits from its total capital base.
The performance worsened in 2023, with a negative return on total capital of -3.78%, indicating that the company faced challenges in efficiently utilizing its capital resources to generate positive returns.
Lastly, in 2024, the return on total capital surged to 1,081.78%, a significant and unusually high figure that may be attributed to various factors such as extraordinary gains, one-time events, or accounting adjustments.
Overall, the return on total capital for Mohawk Industries Inc shows fluctuations over the years, with significant improvements in some periods and notable challenges in others, highlighting the importance of consistent monitoring and evaluation of the company's capital utilization efficiency.
Peer comparison
Dec 31, 2024