Mohawk Industries Inc (MHK)
Financial leverage 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 13,559,900 | 13,138,500 | 14,585,200 | 14,763,500 | 14,120,400 | 13,801,000 | 14,689,500 | 14,386,700 | 14,224,500 | 14,450,300 | 14,792,800 | 14,290,100 | 14,327,800 | 13,784,200 | 13,369,400 | 13,256,900 | 13,386,700 | 13,392,800 | 13,806,100 | 13,605,100 |
| 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 |
| Financial leverage ratio | 1.78 | 1.81 | 1.78 | 1.82 | 1.76 | 1.77 | 1.71 | 1.74 | 1.69 | 1.65 | 1.69 | 1.68 | 1.68 | 1.69 | 1.69 | 1.69 | 1.65 | 1.73 | 1.77 | 1.80 |
December 31, 2023 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $13,559,900K ÷ $7,623,070K
= 1.78
The financial leverage ratio of Mohawk Industries, Inc. has been relatively stable over the past eight quarters, ranging between 1.71 and 1.82. This ratio measures the extent to which the company relies on debt to finance its operations and investments.
A ratio above 1 indicates that the company has more debt than equity in its capital structure. Mohawk Industries' financial leverage ratios have consistently been above 1, suggesting a higher proportion of debt compared to equity in their financing.
The stability of the financial leverage ratio indicates that Mohawk Industries has maintained a consistent approach to financing its operations with a relatively high level of debt. This can have implications for the company's risk profile, cost of capital, and overall financial health. It is essential for stakeholders to monitor this ratio along with other financial metrics to assess the company's ability to meet its debt obligations and sustain its operations effectively.
Peer comparison
Dec 31, 2023