Mueller Industries Inc (MLI)
Payables turnover
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cost of revenue (ttm) | US$ in thousands | 2,601,015 | 2,691,689 | 2,787,217 | 2,961,753 | 3,074,922 | 3,174,938 | 3,238,912 | 3,212,686 | 3,134,572 | 2,959,626 | 2,705,963 | 2,299,094 | 2,139,743 | 2,026,975 | 2,039,376 | 2,206,995 | 2,204,539 | 2,221,488 | 2,275,806 | 2,273,660 |
| Payables | US$ in thousands | 120,485 | 141,930 | 155,096 | 179,244 | 128,000 | 166,978 | 208,869 | 226,712 | 180,793 | 180,509 | 190,403 | 177,174 | 147,741 | 108,063 | 93,579 | 94,251 | 85,644 | 102,084 | 106,055 | 107,301 |
| Payables turnover | 21.59 | 18.96 | 17.97 | 16.52 | 24.02 | 19.01 | 15.51 | 14.17 | 17.34 | 16.40 | 14.21 | 12.98 | 14.48 | 18.76 | 21.79 | 23.42 | 25.74 | 21.76 | 21.46 | 21.19 |
December 31, 2023 calculation
Payables turnover = Cost of revenue (ttm) ÷ Payables
= $2,601,015K ÷ $120,485K
= 21.59
Mueller Industries Inc's payables turnover has exhibited fluctuations over the recent quarters, showing both increases and decreases. The payables turnover ratio measures how efficiently the company is managing its payments to suppliers.
The trend indicates an improvement in payables management from a low of 12.98 in March 2021 to a high of 24.02 in December 2022 before decreasing to 16.52 in March 2023. The most recent value of 21.59 as of December 2023 suggests that the company is taking longer to pay its suppliers compared to the previous quarter but is still maintaining a relatively high turnover rate.
In general, a higher payables turnover ratio indicates that the company is paying its suppliers more frequently, which can be a sign of strong liquidity and efficient working capital management. However, too high of a turnover ratio may also indicate possible strain on supplier relationships. It is important for Mueller Industries Inc to monitor this ratio closely and ensure a balance between timely payments and maintaining good relationships with suppliers.
Peer comparison
Dec 31, 2023