Mueller Industries Inc (MLI)
Days of inventory on hand (DOH)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Inventory turnover | 6.98 | 6.85 | 7.29 | 6.79 | 7.55 | |
| DOH | days | 52.30 | 53.29 | 50.06 | 53.73 | 48.36 |
December 31, 2023 calculation
DOH = 365 ÷ Inventory turnover
= 365 ÷ 6.98
= 52.30
Mueller Industries Inc's days of inventory on hand (DOH) have exhibited some variability over the past five years. The DOH ranged from 48.36 days in 2019 to 53.73 days in 2020, with a slight decrease to 50.06 days in 2021, followed by a slight increase to 53.29 days in 2022, and then a further decline to 52.30 days in 2023.
Overall, the trend suggests that Mueller Industries Inc has been able to manage its inventory levels reasonably well over the years, with fluctuations within a relatively narrow range. However, a DOH above industry averages could indicate potential issues such as excess inventory or slow-moving stock, which may tie up capital and impact profitability. Conversely, a very low DOH could indicate stockouts or potential production disruptions.
Analysts should consider the company's industry norms and specific strategies to further evaluate the effectiveness of Mueller Industries Inc's inventory management.
Peer comparison
Dec 31, 2023