Mueller Industries Inc (MLI)
Fixed asset turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 3,426,400 | 3,989,020 | 3,813,890 | 2,366,520 | 2,406,100 |
| Property, plant and equipment | US$ in thousands | 385,165 | 379,950 | 385,562 | 376,572 | 363,128 |
| Fixed asset turnover | 8.90 | 10.50 | 9.89 | 6.28 | 6.63 |
December 31, 2023 calculation
Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $3,426,400K ÷ $385,165K
= 8.90
Mueller Industries Inc's fixed asset turnover ratio has shown fluctuations over the past five years. The ratio measures how efficiently the company generates revenue from its fixed assets.
In 2023, the fixed asset turnover ratio was 8.90, which indicates that the company generated $8.90 in revenue for every dollar invested in fixed assets. This was a decrease from the previous year (10.50), suggesting a potential decline in asset utilization efficiency. However, the ratio remained relatively high, indicating strong revenue generation relative to fixed asset investment.
Comparing 2023 to 2021 and 2020, the company exhibited higher fixed asset turnover ratios, implying improved efficiency in utilizing fixed assets to generate revenue during those years. This may suggest better operational performance and asset management during those periods.
Although the fixed asset turnover ratio decreased from 2019 to 2020, it remained relatively stable over the years, demonstrating consistent performance in leveraging fixed assets to generate sales.
Overall, Mueller Industries Inc has generally maintained a solid fixed asset turnover ratio, indicating efficient utilization of its fixed assets to drive revenue generation. Vigilance may be required to monitor any future fluctuations that could impact the company's operational efficiency and asset productivity.
Peer comparison
Dec 31, 2023