Mohawk Industries Inc (MHK)
Return on total capital
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | -277,140 | -397,235 | -176,477 | 43,355 | 235,295 | 436,268 | 1,300,618 | 1,345,376 | 1,346,856 | 1,384,209 | 1,287,596 | 810,508 | 636,623 | 511,653 | 435,875 | 767,234 | 790,457 | 838,295 | 936,464 | 990,027 |
| Long-term debt | US$ in thousands | 1,701,780 | 1,675,590 | 2,013,330 | 2,265,140 | 1,978,560 | 1,019,980 | 1,052,060 | 1,088,400 | 1,700,280 | 1,710,210 | 1,723,290 | 1,719,120 | 2,356,890 | 2,282,780 | 2,573,160 | 1,514,000 | 1,518,390 | 1,483,580 | 1,169,490 | 1,497,980 |
| 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 |
| Return on total capital | -2.97% | -4.44% | -1.73% | 0.42% | 2.36% | 4.94% | 13.47% | 14.36% | 13.31% | 13.24% | 12.27% | 7.94% | 5.85% | 4.90% | 4.15% | 8.20% | 8.20% | 9.07% | 10.42% | 10.92% |
December 31, 2023 calculation
Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $-277,140K ÷ ($1,701,780K + $7,623,070K)
= -2.97%
The return on total capital for Mohawk Industries, Inc. has generally been trending downwards over the last four quarters, indicating a potential decline in the company's ability to generate returns from its total capital employed. Specifically, the return on total capital decreased from 12.26% in Q1 2022 to 5.71% in Q4 2023. This suggests that the company may not be utilizing its capital as efficiently as before, potentially pointing to issues in operational performance or capital allocation strategies. Further analysis and investigation into the company's financial and operational factors are recommended to identify the root causes of this decreasing trend and to devise appropriate strategies for improvement.
Peer comparison
Dec 31, 2023