Mueller Industries Inc (MLI)
Days of inventory on hand (DOH)
| 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 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Inventory turnover | 6.84 | 6.87 | 5.98 | 6.54 | 6.85 | 6.99 | 6.81 | 6.81 | 7.29 | 7.30 | 7.03 | 6.29 | 6.79 | 7.47 | 8.34 | 8.17 | 7.55 | 8.00 | 7.58 | 6.59 | |
| DOH | days | 53.36 | 53.12 | 60.99 | 55.81 | 53.29 | 52.25 | 53.64 | 53.62 | 50.10 | 50.02 | 51.93 | 58.02 | 53.73 | 48.86 | 43.74 | 44.67 | 48.36 | 45.61 | 48.18 | 55.36 |
December 31, 2023 calculation
DOH = 365 ÷ Inventory turnover
= 365 ÷ 6.84
= 53.36
The Days of Inventory on Hand (DOH) for Mueller Industries Inc has shown some fluctuations over the past few quarters. The DOH indicates the average number of days it takes for the company to sell its inventory. A higher DOH may suggest slow inventory turnover and potential obsolescence risks, while a lower DOH may indicate efficient inventory management.
Looking at the trend, we can see that the DOH has ranged from a low of 43.74 days in June 2020 to a high of 60.99 days in June 2023. This indicates some variability in the company's inventory management efficiency. However, it is worth noting that the DOH has generally been within a relatively narrow range between 43.74 days and 60.99 days over the past few years.
The increase in DOH from March 2021 to June 2023 might suggest a potential buildup of inventory levels, which could tie up working capital and lead to higher storage costs. On the other hand, the decrease in DOH from June 2020 to March 2021 followed by an increase in the subsequent quarters may indicate fluctuations in demand or production levels impacting inventory management.
Overall, further analysis of the underlying reasons for the fluctuations in DOH, such as changes in sales patterns, production issues, or supply chain disruptions, would be needed to fully assess the implications of the inventory management practices at Mueller Industries Inc.
Peer comparison
Dec 31, 2023