← All companies ← MH Manual MHLA → ← LZB Household Durables SGI →

MHK, Mohawk Industries Inc.

Household Durables consumer brand Cyclical

Mohawk is a leading global flooring manufacturer that creates products to enhance residential and commercial spaces around the world.

The Company's industry-leading innovation develops products and technologies that differentiate its brands in the marketplace and satisfy all flooring-related remodeling and new construction requirements.

The Company's brands are among the most recognized in the industry and include American Olean , Daltile , Decortiles , Durkan , Eliane , Elizabeth , Feltex , Godfrey Hirst , IVC Home , Karastan , Kerama Marazzi , Marazzi , Moduleo , Mohawk , Pergo , Quick-Step , Unilin and Vitromex .

Latest annual: FY2025 10-K

MHK · Mohawk Industries Inc.

The business

What it sells, where the money comes from, the kind of company it is.

Revenue · FY2025

$10.8B

−0.5% YoY · 2% 5-yr CAGR

Vital signs · TTM, with 5-yr average

Revenue $11.0B 5-yr avg $11.1B

Gross margin 24% 5-yr avg 25%

Operating margin 4.6% 5-yr avg 4.5%

ROIC 4% 5-yr avg 4%

Owner-earnings margin 6% 5-yr avg 5%

Free cash flow margin 6% 5-yr avg 5%

The business in brief

read the 10-K →

What this business is and what moves its needle, from its own SEC filings.

What it is: Revenue is led by Ceramic and Stone (39%) and Carpet and Resilient (35%), with 2 more lines behind.
Situation: Cyclical. Margins collapse and recover repeatedly across the record; a single year, good or bad, misstates the through-cycle earning power.
What moves the needle: Gross margin has run about 25% and operating margin about 6.7% through the cycle, a solid spread between what it charges and what the product costs to make. The operating margin has swung widely — from −2.6% to 14% — on a steadier 25% gross margin, so what moves it sits below the gross line, in operating spend and one-off charges more than in the cost of the product itself. Inventory runs near 23% of sales, so how fast it turns back into cash — and the risk of writing it down when demand softens — sits alongside the margin. On its own account, the filing leans hardest on pricing power & competition, set against the numbers in what the filing emphasizes, below.
Is it a good business?: Return on capital has rarely cleared the cost of capital (median 7%, above 15% in 0 of 10 years). By owner earnings: roughly 7% of revenue reaches owners as cash, consistently. The cycle and the balance sheet decide this one; the worst year tells more than the median, and the rest is in the 10-K.

Every line is arithmetic on the company's filings, shown in full in the sections below.

Where the money comes from

read the 10-K →

Revenue spreads across 4 lines, the largest Ceramic And Stone at 39%.

Revenue by product line, FY2025

Ceramic And Stone39%$4.2B
Carpet And Resilient35%$3.7B
Laminate and Wood16%$1.8B
Other10%$1.1B

By geographyUnited States54%Europe31%Other8%Other8%Latin America7%

From the segment footnote of the company's own 10-K. Shares are of total revenue; the profit bar shows each segment's share of segment operating profit, before unallocated corporate costs.

The record

Ten years of arithmetic, read across the cycle.

The record, 2016–2025

realized figures from each filing · older years to the left

2016’16	2017’17	2018’18	2019’19	2020’20	2021’21	2022’22	2023’23	2024’24	2025’25	TTMTTMApr 2026
											Income statement
$9.0B	$9.5B	$10.0B	$10.0B	$9.6B	$11.2B	$11.7B	$11.1B	$10.8B	$10.8B	$11.0B	RevenueRevenue
31%	32%	28%	27%	25%	29%	25%	24%	25%	24%	24%	Gross marginGross mgn
17%	17%	17%	19%	19%	17%	17%	19%	18%	19%	19%	SG&A / revenueSG&A/rev
$1.3B	$1.4B	$1.1B	$827M	$636M	$1.3B	$244M	($292M)	$694M	$490M	$506M	Operating incomeOp. inc.
14.3%	14.3%	11.0%	8.3%	6.7%	11.9%	2.1%	−2.6%	6.4%	4.5%	4.6%	Operating marginOp. mgn
$930M	$972M	$862M	$744M	$516M	$1.0B	$25M	($449M)	$515M	$370M	$414M	Net incomeNet inc.
25%	26%	18%	1%	12%	20%	—	—	20%	21%	15%	Effective tax rateTax rate
											Cash flow & returns
$1.3B	$1.2B	$1.2B	$1.4B	$1.8B	$1.3B	$669M	$1.3B	$1.1B	$1.1B	$1.2B	Operating cash flowOp. cash
$409M	$447M	$522M	$576M	$608M	$592M	$596M	$630M	$638M	$653M	$684M	DepreciationDeprec.
($30M)	($261M)	($234M)	$74M	$627M	($341M)	$26M	$1.1B	($47M)	$4M	$34M	Working capital & otherWC & other
$672M	$906M	$794M	$545M	$426M	$676M	$581M	$613M	$454M	$440M	$453M	CapexCapex
7.5%	9.5%	8.0%	5.5%	4.5%	6.0%	4.9%	5.5%	4.2%	4.1%	4.1%	Capex / revenueCapex/rev
$936M	$747M	$660M	$873M	$1.3B	$633M	$89M	$716M	$680M	$616M	$709M	Owner earningsOwner earn.
10.4%	7.9%	6.6%	8.8%	14.1%	5.7%	0.8%	6.4%	6.3%	5.7%	6.5%	Owner earnings marginOE mgn
$673M	$288M	$387M	$873M	$1.3B	$633M	$89M	$716M	$680M	$616M	$709M	Free cash flowFCF
7.5%	3.0%	3.9%	8.8%	14.1%	5.7%	0.8%	6.4%	6.3%	5.7%	6.5%	Free cash flow marginFCF mgn
$0	$251M	$569M	$81M	$0	$124M	$210M	$515M	$0	$7M	$7M	AcquisitionsAcquis.
$0	$0	$274M	$100M	$189M	$900M	$308M	$0	$163M	$150M	—	BuybacksBuybacks
12%	10%	9%	8%	5%	10%	1%	-2%	6%	4%	4%	ROICROIC
16%	14%	12%	9%	6%	12%	0%	-6%	7%	4%	5%	Return on equityROE
16%	14%	12%	9%	6%	12%	0%	−6%	7%	4%	5%	Retained to equityRetained/eq
											Balance sheet
$122M	$85M	$119M	$177M	$1.3B	$592M	$668M	$643M	$667M	$856M	$872M	Cash & investmentsCash+inv
$1.4B	$1.6B	$1.6B	$1.5B	$1.7B	$1.8B	$1.9B	$1.9B	$1.8B	$1.9B	$2.1B	ReceivablesReceiv.
$1.7B	$1.9B	$2.3B	$2.3B	$1.9B	$2.4B	$2.8B	$2.6B	$2.5B	$2.7B	$2.7B	InventoryInvent.
$729M	$810M	$812M	$825M	$1.0B	$1.2B	$1.1B	$1.0B	$979M	$1.1B	$1.2B	Accounts payablePayables
$2.3B	$2.7B	$3.1B	$3.0B	$2.6B	$3.0B	$3.6B	$3.4B	$3.3B	$3.5B	$3.6B	Operating working capitalOper. WC
$3.5B	$4.1B	$4.5B	$4.4B	$5.4B	$5.2B	$5.9B	$5.6B	$5.5B	$6.0B	$6.2B	Current assetsCur. assets
$2.7B	$2.7B	$3.3B	$2.7B	$2.4B	$2.9B	$3.1B	$3.1B	$2.7B	$2.7B	$2.9B	Current liabilitiesCur. liab.
1.3×	1.5×	1.4×	1.6×	2.3×	1.8×	1.9×	1.8×	2.0×	2.2×	2.2×	Current ratioCurr. ratio
$2.3B	$2.5B	$2.5B	$2.6B	$2.7B	$2.6B	$1.9B	$1.2B	$1.1B	$1.2B	$1.2B	GoodwillGoodwill
$10.2B	$12.1B	$13.1B	$13.4B	$14.3B	$14.2B	$14.1B	$13.5B	$12.7B	$13.7B	$13.8B	Total assetsAssets
$2.5B	$2.8B	$3.3B	$2.6B	$2.7B	$2.3B	$2.8B	$2.7B	$2.2B	$2.0B	$2.1B	Total debtDebt
$2.4B	$2.7B	$3.1B	$2.4B	$1.4B	$1.7B	$2.2B	$2.1B	$1.6B	$1.2B	$1.2B	Net debt / (cash)Net debt
31.6×	43.5×	28.2×	20.0×	12.1×	23.3×	4.7×	-3.8×	14.3×	27.5×	36.6×	Interest coverageInt. cov.
$5.8B	$7.1B	$7.4B	$8.1B	$8.5B	$8.4B	$8.0B	$7.6B	$7.5B	$8.4B	$8.4B	Shareholders’ equityEquity
0.4%	0.4%	0.3%	0.2%	0.2%	0.2%	0.2%	0.2%	0.3%	0.3%	0.3%	Stock comp / revenueSBC/rev
											Per share
74.6M	74.8M	74.8M	72.3M	71.4M	69.1M	64.1M	63.7M	63.6M	62.4M	61.7M	Shares out (diluted)Shares
$120.15	$126.82	$133.52	$137.98	$133.78	$161.99	$183.11	$174.81	$170.39	$172.84	$178.09	Revenue / shareRev/sh
$12.48	$12.98	$11.52	$10.30	$7.22	$14.94	$0.39	$-7.05	$8.09	$5.93	$6.72	EPS (diluted)EPS
$12.55	$9.98	$8.82	$12.08	$18.83	$9.15	$1.38	$11.24	$10.68	$9.88	$11.50	Owner earnings / shareOE/sh
$9.03	$3.84	$5.18	$12.08	$18.83	$9.15	$1.38	$11.24	$10.68	$9.88	$11.50	Free cash flow / shareFCF/sh
$9.01	$12.11	$10.62	$7.55	$5.96	$9.78	$9.06	$9.62	$7.14	$7.05	$7.35	Cap. spending / shareCapex/sh
$77.47	$94.32	$99.42	$112.36	$119.53	$121.79	$124.98	$119.67	$118.07	$134.19	$135.75	Book value / shareBVPS

Per-share growththe realized rate an owner's share compounded

	9-yr	5-yr
Revenue / share	+4.1%/yr	+5.3%/yr
Owner earnings / share	−2.6%/yr	−12.1%/yr
EPS	−7.9%/yr	−3.9%/yr
Capital spending / share	−2.7%/yr	+3.4%/yr
Book value / share	+6.3%/yr	+2.3%/yr

The record, charted

FY2016–2025

Each measure over its full record; the current point and the worst year marked.

Share count

62Mpeak FY2017

ROIC

4%low FY2023

Gross margin

24%low FY2025

Net debt ÷ owner earnings

1.9×peak FY2022

Owner earnings vs. net income

Owner earningsNet income

The accountant's number, and the cash an owner can take; the gap is the tell.

$616Mowner earningsvs.$370Mnet incomelow FY2022

Where the cash went

ReinvestBuybacksDividendsAcquisitionsRetainedBeyond op. cash

Each year's outlays against its operating cash: the mix, and how it drifts. The hatched cap is spending beyond that year's operating cash — financed from the balance sheet or borrowing, not operations.

FY2016FY2025

Owner-earnings bridge

FY2021–FY2025cash-flow statement, SEC EDGAR →

Net income is the accountant's number; owner earnings is the cash an owner could take out. The walk between them, off the cash-flow statement, and whether the gap is widening or holding.

In fiscal 2025 the business turned $370M of profit into $616M of owner earnings: more cash than the profit line showed, after the non-cash charges and the capital it put back in.

Reported net income$370M

Owner earnings$616M · 6% of revenue

	FY2025	FY2024	FY2023	FY2022	FY2021
Reported net income	$370M	$515M	($449M)	$25M	$1.0B
Depreciation & amortizationnon-cash charge added back	+$653M	+$638M	+$630M	+$596M	+$592M
Stock-based compensationreal costnon-cash, but a real cost	+$30M	+$28M	+$21M	+$22M	+$26M
Working capital & othertiming of cash in and out, other non-cash items	+$4M	−$47M	+$1.1B	+$26M	−$341M
Cash from operations	$1.1B	$1.1B	$1.3B	$669M	$1.3B
Capital expenditurecash put back in to keep running and to grow	−$440M	−$454M	−$613M	−$581M	−$676M
Owner earnings	$616M	$680M	$716M	$89M	$633M
Owner-earnings marginowner earnings ÷ revenue	6%	6%	6%	1%	6%

Owner earnings is the cash an owner could pull out without starving the business: operating cash less the capital it must spend to hold its position . The cash-flow statement also adds stock comp back as non-cash, but it is a real cost paid in shares; counted as the expense it is (less $30M), owner earnings is nearer $586M.

Maintenance capex is estimated as depreciation where a growing business invests above it; free cash flow is the figure the scorecard's free-cash margin reads.

III

Quality & stewardship

Returns, the balance sheet, capital allocation, and pay.

Owner’s Scorecard

FY2025 10-K · source on SEC EDGAR →

Will it survive?

Can it pay its interest? 27.5×

Comfortable

Operating income $490M ÷ interest expense $18M

What this means
Operating profit covers interest with the kind of margin Graham wanted for a defensive holding. Necessary, not sufficient, it says solvent, not cheap.
How heavy is the debt, net of cash? $1.2B · 2.4× operating profit

Meaningful net debt

Cash $856M − debt $2.0B

What this means
Netting $856M of cash and short-term investments against $2.0B of debt leaves $1.2B owed, about 2.4× a year's operating profit (4.1× on the gross debt, before the cash). Net debt is the leverage figure that matters: the cash is already set against the debt. Strategic or illiquid investments aren't counted here.
How long is cash tied up? 135d

Long (60+ days)

DSO 65 + DIO 118 − DPO 48 days

What this means
Days cash is tied up between paying suppliers and collecting from customers. Lower is better; a long cycle means growth itself eats cash.

Is it a good business?

Return on invested capital 6%

Below average through the cycle

10-yr median, range -2%–12%; 4% latest = NOPAT $387M ÷ invested capital $9.5B

Industry peers: median 12%

What this means
The rate the business earns on the money tied up in it, Buffett's north star, because over time a stock tracks the ROIC beneath it. Above ~15% sustained hints at a moat; a return below the cost of capital (~8%) erodes value as a business grows rather than building it — the test Buffett weighs most. The headline is the median of the last 10 years (it ran 4% most recently), so one peak or trough year doesn't set the verdict. Asset-light businesses (R&D expensed, little capital) read artificially high, pair this with Owner Earnings.
Owner-earnings margin 6%

Solid through the cycle

10-yr median margin, range 1%–14%; latest $616M = operating cash $1.1B − maintenance capex $440M

Industry peers: median 13%

What this means
What an owner could take out without starving the business: operating cash less the maintenance capital it must spend to hold its position — Buffett's owner earnings. That's 6% of revenue this year, a 6% median across 10 years. Treating stock comp as the real expense it is (less $30M of SBC) leaves $586M.
Are earnings backed by cash? 2.86×

Cash-backed

Cash from ops $1.1B ÷ net income $370M

What this means
How much of reported profit showed up as operating cash. Above 1× is reassuring; well below suggests earnings lean on accruals. One year is noisy, growth and working-capital swings distort it, and this is operating cash, not free cash. Watch the multi-year trend.

How is the cash used?

Where do the earnings go? 24%

Reinvests most of it

Dividends + buybacks $150M ÷ Owner Earnings $616M

What this means
Of $616M Owner Earnings, $150M (24%) went back to shareholders, $0 dividends, $150M buybacks. Net of $30M stock comp, the real buyback was about $120M. Returning most of it is the mark of a mature business with little left to reinvest at a high return; reinvesting most could mean a long runway, or empire-building. The split doesn't say which; the return earned on it (see ROIC) does.
Investing or harvesting? 0.67×

Harvesting

Capex $440M ÷ depreciation $653M

What this means
Descriptive, not a grade. Above ~1× means investing faster than assets wear out (growth, or, sustained for years, today's earnings carrying less depreciation than tomorrow's will). Below means spending less than it's wearing out (efficiency, or a melting asset base). The ratio won't tell you which; the filings will.

Graham’s defensive tests · 3 of 6 met

Graham’s numerical criteria for the defensive investor (The Intelligent Investor, ch. 14), run on the filings. A floor of safety, not a buy signal; many fine modern businesses fail his strictest liquidity rules by design.

Adequate size Pass

Revenue ≥ $2B · $10.8B

What this means
Big enough to weather a storm. Graham's 1972 floor was ~$100M of sales (≈ $700M today); we use a $2B revenue line as a conservative modern stand-in.
Strong liquidity Pass

Current ratio ≥ 2× · 2.19×

What this means
Current assets at least twice current liabilities, near-term bills covered without touching the business. Strict by design: many cash-rich modern firms run leaner and miss it, holding their cushion in longer-dated securities.
Conservative debt Pass

Debt ≤ working capital · $2.0B vs $3.2B WC

What this means
Graham's rule that borrowings not exceed net current assets. Capital-heavy and buyback-heavy firms routinely fail it, read it next to interest coverage, not alone.
Earnings stability Near

A profit every year (10-yr record) · 1 loss year

What this means
Graham wanted earnings in each of the past ten years, the stability a defensive owner leans on.
Dividend record Miss

Uninterrupted dividends · none paid

What this means
An unbroken dividend was Graham's mark of durability. He wanted twenty years; the filings show about ten, and a single suspension breaks the streak. Non-payers, many fine modern compounders, fall outside his defensive net by design.
Earnings growth Miss

Earnings +33% over the record · −84%

What this means
At least a third more earnings than a decade ago, averaging three years at each end. Net income (not per-share), so stock splits don't distort it, buybacks and dilution show up in the share-count line instead.
Moderate price —

P/E ≤ 15 and P/E × P/B ≤ 22.5 · decided by the price

What this means
Graham's valuation gate, the wall he kept between a sound business and a sound investment. Three-year average earnings are $2.38/share (latest year $6.07), the averaged base the calculator's gate runs on, and book value is $137.37/share. Enter a price in “What the price implies” just below for the P/E, P/B, and whether it clears. But this is the rule Buffett outgrew: there's no hard P/E law, and a wonderful business can deserve a far richer multiple if the thesis holds, treat it as the bargain-hunter's floor, not a verdict on the price.

Durability & moat, 2016–2025

Whether the record’s returns held, and what the capital reinvested earned.

Profitable years 9 of 10

What this means
Lost money in 1 year(s), look at what happened there before trusting the average.
Return on capital ≥ 15% 0 of 10 yrs

What this means
A moat shows up as a high return on invested capital that holds year after year, not one good vintage.
Operating margin 13% → 3% (3-yr avg ends)

What this means
Through the cycle the operating margin slipped — about 13% early to 3% lately, median 7% — competition or costs are biting in.
Reinvestment, incremental ROIC returns capital

What this means
The capital base barely grew: this business returns cash through dividends and buybacks rather than reinvesting. Judge it on the cash returned, not on compounding.
Owner earnings growth −3%/yr

What this means
Owner earnings shrank about 3% a year over the record.
Worst year 2023 · −2.6% op. margin

What this means
Operations went underwater in 2023, understand why before trusting the good years.
Share count −2.0%/yr

What this means
The share count is shrinking, buybacks are quietly growing your slice of the business.

Does AI threaten the moat?

Moderate contestability

AI is likely to reshape costs and some products here without clearly contesting or sparing the core moat; how the company itself frames it is the tell.

In its own filing Raised, but not as a competitor

The filing raises AI among its risks, but in other terms (security, regulation, energy or the like), not as a competitor to its product.

The question is whether a moat the record shows as durable outlasts a technology that lowers the cost of part of what the firm sells. The durability is read in the record above, the filing's own framing of AI beside it; the industry label decides nothing on its own.

Read from the filing's own risk factors, paired with the industry's structure under its SIC code; the durability is read above, the price below.

All figures as filed; the source filing is linked above.

Current Position

as of the latest quarter, Apr 4, 2026

Can the business pay what it owes this year, off the freshest balance sheet: the quality of the assets, the debt actually coming due, and what a low ratio means here.

Current assets$6.2B

Cash & short-term investments$872M
Receivables$2.1B
Inventory$2.7B
Other current assets$555M

Current liabilities$2.9B

Debt due within a year$381M
Accounts payable$1.2B
Other current liabilities$1.3B

Current ratio2.16×all current assets ÷ what's due · Graham looked for 2×

Quick ratio1.23×stricter: inventory excluded

Cash ratio0.30×strictest: cash alone against what's due

Working capital$3.3Bthe cushion left after near-term bills

Debt due this year vs. cash$381M due · $872M cash covered by cash on hand, no refinancing forced · both figures from the Apr 4, 2026 balance sheet

Revenue, latest quarter vs. a year ago+8.0%the freshest read on whether the business is still growing

Current ratio, recent quarters1.9× → 2.2×

Deeper floors

Tangible book value$7.1Bequity stripped of goodwill & intangibles

Net current asset value$789MGraham's net-net: current assets less all liabilities

Debt incl. operating leases$2.5B$412M of it operating leases; with finance leases, “total fixed claims” below reaches $2.5B (annual-report basis)

Deferred revenue$71Mcustomer cash collected before delivery; operating float

From the company's latest filing.

Debt maturity

the debt note, SEC EDGAR →

Not how much it owes, but when it falls due, and against what. The ladder the company files, beside cash on hand and a year's owner earnings.

'26$289M

'27$607M

'28$616M

'29$10M

'30$506M

later$9M

Bars scaled to the largest single year; “later” is everything due after 2030, shown apart since it dwarfs the years.

Due in the next 12 months$289Mthe first rung: what must be repaid or rolled over within the year

Within two years$897Mthe near wall, the part most exposed to today’s credit conditions

Biggest single year$616Min 2028the lumpiest maturity, where a refinancing, if needed, is largest

Total scheduled principal$2.0Bevery year plus what lies beyond, as the footnote totals it

Against what the business has and earns

Cash & short-term investments, Apr 4, 2026$872M

One year of owner earnings (FY2025)$616M

Together, against $289M due next year5.1×

Cash on hand as of Apr 4, 2026 plus a year’s owner earnings comes to $1.5B against the $289M due in the twelve months after the Dec 31, 2025 schedule: 5.1 times it.

Maturity schedule extracted from the company’s Dec 31, 2025 annual report and reconciled to the total the table states.

Lease obligations

the lease note, SEC EDGAR →

Debt by another name. What the business owes on the property, aircraft, stores and equipment it rents rather than owns is a fixed claim due on a schedule; added back to the debt, it is the true leverage. That ladder, operating and finance leases together, and what it adds to the debt on the page above.

Operating leasesFinance leases

'26$177M

'27$140M

'28$102M

'29$60M

'30$39M

later$58M

Lease payments by year, scaled to the largest; “later” is everything beyond year five, shown apart. These are the contractual cash payments, before the interest the filing imputes back out to the balance-sheet liability.

Due in the next 12 months$177Ma fixed cash payment, owed whether or not the business has a good year

Total lease payments$576Mevery year plus the tail, undiscounted: the full cash the leases will take

On the balance sheet$510Mthe present value of those payments, the recognised lease liability

True leverage: debt plus leases

On-balance-sheet debt$2.0B

Lease obligations (present value)$510M

Total fixed claims on the business$2.5B

Counting the leases the way Buffett does, the fixed claims on this business come to $2.5B, of which the leases are 20%. The lease wall above and the debt schedule together are the calendar of what must be paid, and when.

Lease ladder read from the ASC 842 tags in the company’s Dec 31, 2025 annual report and reconciled: the yearly buckets sum to the undiscounted total, which less the imputed interest equals the balance-sheet liability; a ladder that doesn’t tie out is withheld.

How the cash was used, 2016–2025

Over the record, the business generated $12.4B of operating cash; how management split it reads as a balanced allocator, splitting cash between the business, owners, and the balance sheet.

Reinvested$6.1B · 49%
Buybacks$2.1B · 17%
Retained (debt / cash)$4.2B · 34%

Returned to owners$2.1B
29% of the owner earnings the business produced over the span, $0 as dividends and $2.1B as buybacks.
Average price paid for buybacks—
Buybacks ran $2.1B over the span, but the filings don't tag the share count needed to deduce the average price paid.
Net change in share count−17.3%
The diluted count fell from 75M to 62M, so the buybacks outran the stock issued to staff.
Dividend record—
No dividend line was reported in the filing data over the span; the record here neither confirms nor rules out a payout.
Return on what it retained−3%
Of the earnings it kept rather than paid out ($3.4B over the span), annual owner earnings (first three years vs last three) fell $110M, so each retained $1 gave back about 0.03 of yearly owner earnings. Buffett's test, run on owner earnings instead of market value.

Buybacks are gross of stock issued to staff; the share-count line above is the net of that, the figure that decides whether owners gained. The average price paid blends a year of purchases (and any accelerated repurchase), so it is close, not exact. The record of where the cash went and on what terms.

Acquisitions & goodwill

from the balance sheet & the 10-year cash-flow record

Goodwill grows only when a company acquires and falls only when it concedes it overpaid. The size of that bet, the cash put into buying rather than building, and how much has already been written off.

Goodwill & intangibles$1.3B10% of all assets; the premium carried on the balance sheet for businesses acquired

Against book equity14%goodwill is this share of book equity; the rest is the company’s own retained and paid-in capital

Cash spent acquiring$1.8Bover 10 years buying other businesses, against $6.1B of capital spent building

$1.6B written down across 2 years (2022, 2023): goodwill the company has already conceded it overpaid for, charged against earnings. That is roughly 89% of the cash it put into acquisitions over the span. A write-down costs no cash (the cash went out when the deal was signed), but it is management marking its own past judgment to market.

Goodwill, acquired intangibles and equity from the latest balance sheet; acquisition spend and write-downs summed across the 10-year record, from the company's own filings.

Management, ownership & pay

read the proxy →

From the proxy: how much of the business the people running it own, and how they are paid, beside what the business earned for its owners in the same years.

Fiscal year	Chief executive	Pay, as filed	“Actually paid”	Owner earnings
2021	Jeffrey S. Lorberbaum	$5.2M	$6.1M	$633M
2022	Jeffrey S. Lorberbaum	$4.3M	$2.4M	$89M
2023	Jeffrey S. Lorberbaum	$4.4M	$4.5M	$716M
2024	Jeffrey S. Lorberbaum	$4.8M	$6.0M	$680M
2025	Jeffrey S. Lorberbaum	$5.2M	$4.8M	$616M

Both pay figures are the company’s own, from the pay-versus-performance table its proxy statement files. “As filed” is the Summary Compensation Table total: salary, bonus, and equity awards at their value on the day of grant. “Actually paid” is the SEC’s prescribed recalculation, which re-marks those equity awards to what they became as they vested; it can swing far above or below the filed figure in either direction, and negative years occur. Owner earnings are the whole business's, from the record above, for the same fiscal years.

Insider ownership17.9%
The stake all directors and executive officers hold together, per the 2026 proxy: skin in the game, the first thing Munger reads.
Stock-based compensation$30M
The slice of the business handed to employees in shares this year, 0% of revenue, equal to 6% of operating profit. Buffett's oldest accounting fight: this is compensation, compensation is an expense, real whether or not the headline earnings admit it. One trap: the cash-flow statement adds SBC back, so the operating cash, and the owner earnings drawn from it, are flattered by exactly this amount; counted as the cost it is, what an owner keeps is lower.

Inverting the record

Invert: instead of why Mohawk Industries Inc. is a good business, the question is what would make owning it a mistake, and whether those marks are in the record. Disconfirming tests across 2016–2025.

2 of the 6 tests turned up something to look into; the other 4 came back clean.

Look hereIs it less profitable than it was?6.1% vs 8.3%
The owner-earnings margin averaged 8.3% early in the record and 6.1% across the last three years, and the latest year has not recovered. Ask the filing whether that is a structural drift or a cyclical trough — price, mix, cost, or a competitor — and whether it is permanent.
Look hereDid receivables and inventory outpace sales?34% → 43% of sales
Receivables and inventory grew from $3.1B to $4.8B while revenue grew 23%: working capital is climbing faster than sales (34% of revenue then, 43% now). That can mean customers paying slower, stock building up, or revenue pulled forward. The filing's cash-flow and receivables notes say which.

And these came back clean

Did the share count rise anyway?
Did debt outgrow the business?
Did reported profit become cash?
Are "one-time" charges a yearly habit?

Each test is read from the filings and is noisy alone; a flag can mark a cyclical trough or a year of heavy investment as easily as a problem. The filing says which.

What an owner would ask, FY2025

read the 10-K →

Which reported numbers are a judgment call?
Management names Income taxes as critical estimates
each rests partly on management's judgment; the filing's note sets out the assumptionsverify →

The questions the record and the charts do not answer on their own; each carries the figure and the place to look.

Peers, nearest by economic model

No close industry peers in the catalog yet, so these are the nearest by economic model (consumer & brand), compared on owner economics. Each figure is a through-cycle median, so a peak or trough year can’t distort it; the group median at the foot is the line to read each against.

Company	Revenue	Gross margin	Op. margin	ROIC	Owner earn. margin
HSYThe Hershey Company	$11.7B	45%	21.3%	28%	17%
CAGConAgra Brands Inc.	$11.3B	28%	14.8%	8%	9%
LULUlululemon athletica inc.	$11.1B	56%	20.6%	58%	14%
MHKMohawk Industries Inc.	$10.8B	26%	7.5%	7%	7%
CTASCintas	$10.3B	49%	18.0%	20%	15%
BHCBausch Health Companies Inc.	$10.3B	76%	5.5%	2%	13%
CPBThe Campbell's Company	$10.3B	33%	13.6%	12%	11%
TILEInterface Inc.	$1.4B	37%	9.2%	11%	7%
Group median	—	41%	14.2%	12%	12%

The price

What a price has to assume.

What the price implies

reverse-DCF

Type today's close and see the owner-earnings growth you'd have to believe to justify it, beside what Mohawk Industries Inc. has delivered.

Today’s price $

Through the cycle, Mohawk Industries Inc. earns about $703M on its 6.5% median owner-earnings margin. This year’s 5.7% margin runs in line with that. Normalize, below, values the price on that through-cycle figure rather than the latest year.

Base Normalize · through-cycle ($703M) Net of stock comp (−$30M)

—

The assumptions Required return 9% Years of high growth 10 Terminal growth 2.5%

9.0% = the 4.55% 10-year Treasury (Jul 15, 2026) + 4.45 points of equity premium. The rate you require is yours to set.

Enter a price above to run it.

Implied by the price—

Owner-earnings growth · ’21→’25+16%/yr

Owner-earnings growth · ’16→’25+3%/yr

Owner-earnings yield—

P/E (3-yr earnings ’23–’25)—

P/B—

Graham’s price gate—

Graham capped the multiple at 15×; Buffett and Munger let that rule go: a wonderful business can deserve 50× if the thesis holds. The gate marks the bargain-hunter's floor.

Against a high-grade bond: Graham’s yardstick bond yield%

Prefilled with the 10-year Treasury (4.55%, as of Jul 15, 2026). Edit it for today’s exact figure, or a AAA corporate yield.

Graham measured a stock against the bond you could own instead, the heart of his margin of safety. Enter a price above to weigh the owner-earnings yield against this bond.

Owner earnings $709M on 61M shares outstanding, per the 10-Q cover, as of 2026-04-29; net debt $1.2B. The base is the latest year by default; Normalize values it on the through-cycle median owner-earnings margin (to avoid paying on a peak year). Net of stock comp treats option pay as the expense it is. The dials set the multiple a growth belief justifies; the price, and every dollar on this page, is yours.

Weigh MHK against another business →

The owners of MHK: the meeting and the votes →

Cite: Owner Scorecard, "Mohawk Industries Inc. (MHK), the owner's record," https://ownerscorecard.com/c/MHK, data as of 2026-07-09.

Manual order: ← MH its page in the Manual MHLA →

Industry order: ← LZB the Household Durables chapter SGI →