Mueller Industries Inc (MLI)
Inventory turnover
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cost of revenue (ttm) | US$ in thousands | 2,724,328 | 2,601,795 | 2,458,384 | 2,372,666 | 2,442,761 | 2,517,928 | 2,617,507 | 2,823,929 | 2,889,642 | 2,995,436 | 3,061,064 | 3,015,082 | 2,938,989 | 2,765,902 | 2,522,417 | 2,125,864 | 1,966,161 | 1,862,135 | 1,872,143 | 2,032,932 |
| Inventory | US$ in thousands | 462,279 | 400,252 | 406,217 | 356,869 | 380,248 | 391,740 | 465,729 | 452,826 | 448,919 | 454,511 | 475,951 | 471,949 | 430,244 | 405,590 | 384,982 | 365,457 | 315,002 | 271,310 | 244,414 | 270,119 |
| Inventory turnover | 5.89 | 6.50 | 6.05 | 6.65 | 6.42 | 6.43 | 5.62 | 6.24 | 6.44 | 6.59 | 6.43 | 6.39 | 6.83 | 6.82 | 6.55 | 5.82 | 6.24 | 6.86 | 7.66 | 7.53 |
December 31, 2024 calculation
Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $2,724,328K ÷ $462,279K
= 5.89
The inventory turnover of Mueller Industries Inc has shown some fluctuations over the period from March 31, 2020, to December 31, 2024. The inventory turnover ratio represents how many times a company's inventory is sold and replaced within a given time period. Generally, a higher inventory turnover ratio indicates that a company is effectively managing its inventory.
In this case, Mueller Industries Inc's inventory turnover ranged from a high of 7.66 in June 30, 2020, to a low of 5.62 in June 30, 2023. The ratio has shown a general downward trend over the years, with some fluctuations. As of December 31, 2024, the inventory turnover stood at 5.89. This suggests that the company took approximately 5.89 times to sell and replace its inventory during that period.
A decreasing inventory turnover ratio could potentially indicate overstocking, inefficient inventory management, or slowing sales. However, it is important to consider industry benchmarks and company-specific factors when interpreting inventory turnover ratios. Further analysis of Mueller Industries Inc's operations, sales trends, and inventory management practices would provide more insights into the reasons behind the fluctuations in the inventory turnover ratio.
Peer comparison
Dec 31, 2024
Dec 31, 2024