Mueller Industries Inc (MLI)
Activity ratios
Short-term
Turnover ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Inventory turnover | 5.89 | 6.40 | 6.38 | 6.83 | 6.24 |
| Receivables turnover | — | — | — | — | — |
| Payables turnover | — | — | — | — | — |
| Working capital turnover | 5.37 | 1.99 | 3.36 | 5.92 | 4.94 |
Mueller Industries Inc's inventory turnover has been relatively stable over the years, ranging from 5.89 to 6.83. This indicates that the company efficiently manages its inventory by selling and restocking goods at a consistent pace.
The company's receivables turnover, payables turnover, and working capital turnover data are not available, which limits a comprehensive analysis of these activity ratios. However, focusing on inventory turnover, Mueller Industries Inc appears to be effectively converting its inventory into sales, which is a positive sign for its operational efficiency.
It is important to note that a higher inventory turnover ratio is generally desirable as it indicates that the company is efficiently managing its inventory levels and turning its inventory into sales quickly. This can help prevent inventory obsolescence and reduce carrying costs.
Overall, based on the available data, Mueller Industries Inc's inventory turnover seems to be a strength, while further information on other activity ratios would provide a more complete assessment of the company's operational performance.
Average number of days
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 61.94 | 57.03 | 57.19 | 53.43 | 58.48 |
| Days of sales outstanding (DSO) | days | — | — | — | — | — |
| Number of days of payables | days | — | — | — | — | — |
Days of Inventory on Hand (DOH) is a measure of how efficiently a company manages its inventory. A lower DOH indicates that the company is selling its inventory quickly and efficiently. In the case of Mueller Industries Inc, the trend of DOH has been fluctuating over the years starting from 58.48 days in 2020, decreasing to 53.43 days in 2021, then increasing to 57.19 days in 2022, slightly dropping to 57.03 days in 2023, and finally increasing significantly to 61.94 days in 2024.
The increase in DOH from 2023 to 2024 could suggest potential issues with inventory management, potentially leading to excess stock levels or slow-moving inventory. However, a deeper analysis is needed to determine the specific reasons behind this increase and to address any underlying issues.
Days of Sales Outstanding (DSO) and Number of Days of Payables are not provided for Mueller Industries Inc for the years 2020 to 2024. DSO measures how quickly the company collects payments from its customers, while the Number of Days of Payables measures how quickly the company pays its suppliers. Without these metrics, it is challenging to assess the efficiency of the company's accounts receivable and accounts payable management.
In conclusion, Mueller Industries Inc should further evaluate its inventory management practices to maintain optimal inventory levels and address any potential issues contributing to the increase in Days of Inventory on Hand in 2024. Additionally, providing data on Days of Sales Outstanding (DSO) and Number of Days of Payables would offer a more comprehensive view of the company's overall efficiency in managing its working capital.
Long-term
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Fixed asset turnover | — | — | 9.89 | 9.21 | 6.37 |
| Total asset turnover | 1.15 | 1.24 | 1.78 | 2.18 | 1.57 |
The fixed asset turnover ratio for Mueller Industries Inc has shown an increasing trend over the years, from 6.37 in 2020 to 9.21 in 2021 and further to 9.89 in 2022. This indicates that the company is generating more revenue relative to its investment in fixed assets, which is a positive sign of efficiency in utilizing its long-term assets to generate sales.
However, the fixed asset turnover data is missing for 2023 and 2024, making it difficult to assess the trend for those years.
In contrast, the total asset turnover ratio for Mueller Industries Inc has been more volatile, increasing from 1.57 in 2020 to 2.18 in 2021, but then decreasing to 1.78 in 2022, 1.24 in 2023, and 1.15 in 2024. This indicates that the company's ability to generate revenue from its total assets has fluctuated over the years.
Overall, the fixed asset turnover ratios suggest a positive trend in efficiency in utilizing long-term assets, while the total asset turnover ratios show more variability in how effectively the company is generating sales relative to its total asset base.