Mohawk Industries (LTS:0K2F) Gross Margin %

: 24.59% (As of Dec. 2023)

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Gross Margin % is calculated as gross profit divided by its revenue. Mohawk Industries's Gross Profit for the three months ended in Dec. 2023 was $642 Mil. Mohawk Industries's Revenue for the three months ended in Dec. 2023 was $2,612 Mil. Therefore, Mohawk Industries's Gross Margin % for the quarter that ended in Dec. 2023 was 24.59%.

Warning Sign:

Mohawk Industries Inc gross margin has been in long-term decline. The average rate of decline per year is -2.4%.

The historical rank and industry rank for Mohawk Industries's Gross Margin % or its related term are showing as below:

LTS:0K2F' s Gross Margin % Range Over the Past 10 Years
Min: 24.33 Med: 28.02 Max: 31.57
Current: 24.33

During the past 13 years, the highest Gross Margin % of Mohawk Industries was 31.57%. The lowest was 24.33%. And the median was 28.02%.

LTS:0K2F's Gross Margin % is ranked worse than
65.11% of 407 companies
in the Furnishings, Fixtures & Appliances industry
Industry Median: 28.76 vs LTS:0K2F: 24.33

Mohawk Industries had a gross margin of 24.59% for the quarter that ended in Dec. 2023 => Competition eroding margins

The 5-Year average Growth Rate of Gross Margin for Mohawk Industries was -2.40% per year.

Mohawk Industries Gross Margin % Historical Data

The historical data trend for Mohawk Industries's Gross Margin % can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

Mohawk Industries Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Gross Margin %

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26.84

25.45

29.18

25.08

24.33

Mohawk Industries Quarterly Data
	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23
Gross Margin %	Get a 7-Day Free Trial															20.92	22.93	24.81	25.02	24.59

Competitive Comparison

For the Furnishings, Fixtures & Appliances subindustry, Mohawk Industries's Gross Margin %, along with its competitors' market caps and Gross Margin % data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.

Mohawk Industries Gross Margin % Distribution

For the Furnishings, Fixtures & Appliances industry and Consumer Cyclical sector, Mohawk Industries's Gross Margin % distribution charts can be found below:

* The bar in red indicates where Mohawk Industries's Gross Margin % falls into.

Mohawk Industries Gross Margin % Calculation

Gross Margin is the percentage of Gross Profit out of sales or Revenue.

Mohawk Industries's Gross Margin for the fiscal year that ended in Dec. 2023 is calculated as

Gross Margin % (A: Dec. 2023 )	=	Gross Profit (A: Dec. 2023 )	/	Revenue (A: Dec. 2023 )
	=	2709.7	/	11135.115
	=	(Revenue - Cost of Goods Sold)	/	Revenue
	=	(11135.115 - 8425.463)	/	11135.115
	=	24.33 %

Mohawk Industries's Gross Margin for the quarter that ended in Dec. 2023 is calculated as

Gross Margin % (Q: Dec. 2023 )	=	Gross Profit (Q: Dec. 2023 )	/	Revenue (Q: Dec. 2023 )
	=	642.3	/	2612.278
	=	(Revenue - Cost of Goods Sold)	/	Revenue
	=	(2612.278 - 1969.984)	/	2612.278
	=	24.59 %

A positive Gross Profit is only the first step for a company to make a net profit. The gross profit needs to be big enough to also cover related labor, equipment, rental, marketing/advertising, research and development and a lot of other costs in selling the products.

Mohawk Industries (LTS:0K2F) Gross Margin % Explanation

Warren Buffett believes that firms with excellent long term economics tend to have consistently higher margins.

Durable competitive advantage creates a high Gross Margin % because of the freedom to price in excess of cost. Companies can be categorized by their Gross Margin %

1. Greater than 40% = Durable competitive advantage
2. Less than 40% = Competition eroding margins
3. Less than 20% = no sustainable competitive advantage
Consistency of Gross Margin is key

Mohawk Industries had a gross margin of 24.59% for the quarter that ended in Dec. 2023 => Competition eroding margins

Be Aware

If a company loses its competitive advantages, usually its gross margin declines well before its sales declines. Watching Gross Margin % and Operating Margin % closely helps avoid value trap situations.

Mohawk Industries Gross Margin % Related Terms

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Mohawk Industries (LTS:0K2F) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Cyclical » Furnishings, Fixtures & Appliances » Mohawk Industries Inc (LTS:0K2F) » Definitions » Gross Margin %

Comparable Companies

Traded in Other Exchanges

MHK:USA M1HK34:Brazil

Address

160 South Industrial Boulevard, Calhoun, GA, USA, 30701

Website

https://www.mohawkind.com

Mohawk Industries Inc manufactures a wide range of flooring products, including carpets, rugs, ceramic tile, laminate, wood, luxury vinyl tile, and vinyl flooring. Its operating segments include Global Ceramic, Flooring NA, and Flooring ROW. The company generates maximum revenue from the Global Ceramic segment. Geographically, it derives a majority of its revenue from the United States.

Mohawk Industries (LTS:0K2F) Headlines

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