Mohawk Industries Inc (MHK)
Financial leverage ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 12,778,600 | 13,559,900 | 14,120,400 | 14,224,500 | 14,327,800 |
| Total stockholders’ equity | US$ in thousands | 64,200 | 7,623,070 | 8,017,910 | 8,428,220 | 8,541,160 |
| Financial leverage ratio | 199.04 | 1.78 | 1.76 | 1.69 | 1.68 |
December 31, 2024 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $12,778,600K ÷ $64,200K
= 199.04
The financial leverage ratio of Mohawk Industries Inc has shown a relatively stable trend over the years, increasing from 1.68 in 2020 to 1.78 in 2023. However, there is a significant spike in the ratio to 199.04 in 2024, which appears to be an anomaly or data error. This may indicate a sudden and extreme change in the company's capital structure or financial position. It is important for stakeholders to investigate and understand the reasons behind this abnormal increase to assess the company's financial health accurately. Overall, excluding the abnormal spike, the gradual increase in the financial leverage ratio suggests that Mohawk Industries Inc has been using more debt to finance its operations, which could potentially increase financial risk but also leverage returns for shareholders.
Peer comparison
Dec 31, 2024