Mohawk Industries Inc (MHK)
Interest coverage
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 744,300 | 894,679 | -43,512 | -148,081 | -176,225 | -396,934 | -176,090 | 43,824 | 235,831 | 436,719 | 1,301,019 | 1,345,866 | 1,347,221 | 1,404,115 | 1,333,380 | 855,793 | 700,236 | 555,720 | 454,009 | 785,912 |
| Interest expense (ttm) | US$ in thousands | 48,600 | 56,076 | 65,020 | 75,277 | 77,514 | 74,739 | 68,392 | 57,594 | 51,938 | 49,506 | 50,657 | 53,492 | 57,252 | 60,980 | 60,886 | 58,948 | 52,378 | 47,443 | 41,905 | 39,470 |
| Interest coverage | 15.31 | 15.95 | -0.67 | -1.97 | -2.27 | -5.31 | -2.57 | 0.76 | 4.54 | 8.82 | 25.68 | 25.16 | 23.53 | 23.03 | 21.90 | 14.52 | 13.37 | 11.71 | 10.83 | 19.91 |
December 31, 2024 calculation
Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $744,300K ÷ $48,600K
= 15.31
The interest coverage ratio for Mohawk Industries Inc has shown fluctuations over the specified time period, indicating the company's ability to meet its interest obligations with its operating income. The ratio increased steadily from March 2020 to June 2021, peaking at 25.68 in June 2022, which suggests a strong ability to cover interest expenses. However, the ratio then declined significantly, reaching negative values in March 2023 and remaining negative until June 2024.
The negative interest coverage ratios in 2023 and 2024 indicate that Mohawk Industries Inc may have faced challenges in generating sufficient operating income to cover its interest expenses during that period. The subsequent recovery in the interest coverage ratio in September and December 2024, shows an improvement in the company's ability to meet its interest obligations.
Overall, it is essential for investors and stakeholders to closely monitor Mohawk Industries Inc's interest coverage ratio to assess the company's financial health and ability to service its debt obligations.
Peer comparison
Dec 31, 2024