Mohawk Industries Inc (MHK)
Debt-to-capital 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 stockholders’ equity | US$ in thousands | 7,623,070 | 8,011,510 | 8,421,420 | 8,534,320 | 8,119,840 |
| Debt-to-capital ratio | 0.18 | 0.20 | 0.17 | 0.22 | 0.16 |
December 31, 2023 calculation
Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $1,701,780K ÷ ($1,701,780K + $7,623,070K)
= 0.18
The debt-to-capital ratio of Mohawk Industries, Inc. has remained relatively stable in recent years, hovering around the range of 0.22 to 0.26. This ratio indicates the proportion of the company's capital structure that is financed by debt, with the remainder funded by equity. A ratio of 0.26 in 2023 suggests that 26% of Mohawk Industries' capital is sourced from debt, while the remaining 74% is funded through equity.
Consistency in the debt-to-capital ratio may indicate a balanced approach in the company's financing strategy, maintaining a healthy mix of debt and equity to support its operations and growth initiatives. It is also important to compare this ratio with industry benchmarks and peer companies to assess Mohawk Industries' leverage position relative to its competitors.
Overall, a stable debt-to-capital ratio signifies a steady financial position and suggests that Mohawk Industries has been managing its debt obligations effectively without taking on excessive leverage that could potentially pose a risk to its financial stability.
Peer comparison
Dec 31, 2023