Mohawk Industries Inc (MHK)
Return on total capital
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 744,300 | 894,679 | -43,512 | -148,081 | -176,225 | -396,934 | -176,090 | 43,824 | 235,831 | 436,719 | 1,301,019 | 1,345,866 | 1,347,221 | 1,404,115 | 1,333,380 | 855,793 | 700,236 | 555,720 | 454,009 | 785,912 |
| Long-term debt | US$ in thousands | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 7,556,900 | 7,849,500 | 7,646,500 | 7,641,900 | 7,623,070 | 7,271,390 | 8,212,020 | 8,105,710 | 8,017,910 | 7,825,060 | 8,600,620 | 8,287,600 | 8,428,220 | 8,752,450 | 8,773,940 | 8,499,030 | 8,541,160 | 8,167,070 | 7,918,810 | 7,847,640 |
| Return on total capital | 9.85% | 11.40% | -0.57% | -1.94% | -2.31% | -5.46% | -2.14% | 0.54% | 2.94% | 5.58% | 15.13% | 16.24% | 15.98% | 16.04% | 15.20% | 10.07% | 8.20% | 6.80% | 5.73% | 10.01% |
December 31, 2024 calculation
Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $744,300K ÷ ($—K + $7,556,900K)
= 9.85%
The return on total capital for Mohawk Industries Inc has exhibited significant fluctuations over the past few years.
From March 31, 2020, to June 30, 2021, the return on total capital showed a general increasing trend, reaching a peak of 16.24% on March 31, 2022. During this period, the company experienced a substantial improvement in efficiently utilizing its capital to generate returns for its investors.
However, starting from June 30, 2022, there was a sharp decline in the return on total capital, dropping to negative figures by March 31, 2024. This indicates that Mohawk Industries Inc may have faced challenges in effectively deploying its capital or generating profits during this period.
By September 30, 2024, there was a notable resurgence in the return on total capital, reaching 11.40% and then slightly decreasing to 9.85% by December 31, 2024. This suggests that the company may have implemented strategic measures to improve its capital efficiency and profitability.
Overall, the fluctuating trend in Mohawk Industries Inc's return on total capital underscores the importance of closely monitoring and analyzing financial performance metrics to understand the company's operational and strategic performance over time.
Peer comparison
Dec 31, 2024