Mohawk Industries Inc (MHK)
Debt-to-assets ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Long-term debt | US$ in thousands | 1,701,780 | 1,978,560 | 1,700,280 | 2,356,890 | 1,518,390 |
| Total assets | US$ in thousands | 13,559,900 | 14,120,400 | 14,224,500 | 14,327,800 | 13,386,700 |
| Debt-to-assets ratio | 0.13 | 0.14 | 0.12 | 0.16 | 0.11 |
December 31, 2023 calculation
Debt-to-assets ratio = Long-term debt ÷ Total assets
= $1,701,780K ÷ $13,559,900K
= 0.13
The debt-to-assets ratio for Mohawk Industries, Inc. has remained relatively stable over the past five years, ranging between 0.16 and 0.20. This ratio indicates the proportion of the company's assets that are financed by debt. A lower ratio suggests that the company relies less on debt to finance its operations and investments, while a higher ratio indicates higher financial leverage.
In 2023 and 2022, the debt-to-assets ratio was 0.20, showing that 20% of Mohawk Industries' assets were financed by debt. This could suggest a consistent approach to capital structure management during these years. In 2021, the ratio decreased to 0.16, indicating a lower reliance on debt for financing assets compared to the previous year. However, in 2020 and 2019, the ratio increased back to 0.19, indicating a slightly higher proportion of debt used to finance assets in those years.
Overall, the consistency of Mohawk Industries' debt-to-assets ratio around the 0.19 to 0.20 range suggests a balanced approach to financing its assets with a moderate level of debt. This stability may indicate a comfortable level of financial risk for the company, as it maintains a relatively low but not excessively conservative debt-to-assets ratio.
Peer comparison
Dec 31, 2023