Mueller Industries Inc (MLI)
Inventory turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 2,653,650 | 3,074,920 | 3,137,140 | 2,139,740 | 2,204,540 |
| Inventory | US$ in thousands | 380,248 | 448,919 | 430,244 | 315,002 | 292,107 |
| Inventory turnover | 6.98 | 6.85 | 7.29 | 6.79 | 7.55 |
December 31, 2023 calculation
Inventory turnover = Cost of revenue ÷ Inventory
= $2,653,650K ÷ $380,248K
= 6.98
The inventory turnover of Mueller Industries Inc over the past five years has shown some fluctuations but generally remained within a relatively consistent range. The company's inventory turnover ratio ranged from 6.79 to 7.55, with an average of approximately 7.07. This indicates that, on average, Mueller Industries Inc has been able to sell and replace its inventory about 7 times a year.
A higher inventory turnover ratio is typically seen as favorable as it suggests efficient management of inventory levels. In this case, the company's inventory turnover ratios have been relatively stable, indicating consistent performance in managing inventory turnover.
It is important to note that inventory turnover ratios can vary between industries, and a comparison with industry peers or benchmarks would provide a more meaningful context for evaluating Mueller Industries Inc's inventory management efficiency. More detailed analysis combining this ratio with other financial metrics would provide a comprehensive understanding of the company's overall performance.
Peer comparison
Dec 31, 2023