Mohawk Industries Inc (MHK)
Debt-to-capital ratio
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 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 |
| Debt-to-capital ratio | 0.18 | 0.19 | 0.20 | 0.22 | 0.20 | 0.12 | 0.11 | 0.12 | 0.17 | 0.16 | 0.16 | 0.17 | 0.22 | 0.22 | 0.25 | 0.16 | 0.16 | 0.16 | 0.13 | 0.17 |
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 been relatively stable over the past eight quarters, ranging from 0.23 to 0.29. This ratio indicates the proportion of the company's capital structure that is financed through debt.
The consistent range of 0.23 to 0.29 suggests that Mohawk Industries has maintained a moderate level of debt compared to its total capital. A ratio below 0.5 generally indicates that the company relies more on equity financing rather than debt financing.
The slight increase from Q1 2023 (0.29) to Q2 2023 (0.27) may indicate a temporary increase in debt levels or a decrease in overall capital during that period. However, the ratio returned to lower levels in subsequent quarters. Overall, the company's debt-to-capital ratio appears to be within a reasonable range, reflecting a balanced capital structure.
It is important to consider industry benchmarks and compare this ratio to competitors to gain a better understanding of Mohawk Industries' leverage and financial risk.
Peer comparison
Dec 31, 2023