Mohawk Industries Inc (MHK)
Debt-to-equity 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-equity ratio | 0.22 | 0.25 | 0.20 | 0.28 | 0.19 |
December 31, 2023 calculation
Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $1,701,780K ÷ $7,623,070K
= 0.22
The debt-to-equity ratio of Mohawk Industries, Inc. has been relatively stable over the past five years, fluctuating between 0.28 and 0.35. A debt-to-equity ratio of 0.35 in 2023 and 2022 indicates that the company's level of debt relative to its equity is moderate. This ratio suggests that, for every dollar of equity, the company has $0.35 in debt.
The consistent nature of the ratio over the years indicates that Mohawk Industries has maintained a balanced capital structure, utilizing a mix of debt and equity financing. A lower debt-to-equity ratio in 2021 compared to the surrounding years could imply that the company reduced its debt levels relative to equity during that period.
Overall, the trend of the debt-to-equity ratio for Mohawk Industries, Inc. does not raise significant concerns about the company's financial leverage or ability to meet its debt obligations. Investors and creditors may find the stability of this ratio reassuring, indicating a prudent approach to managing its capital structure.
Peer comparison
Dec 31, 2023