Mueller Industries Inc (MLI)

Activity ratios

Short-term

Turnover ratios

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
Receivables turnover 9.74 8.72 8.03 — 10.50 9.23 6.81 6.83 8.08 7.15 5.74 5.81 6.66 7.03 8.18 7.78 8.93 7.59 7.78 7.95
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
Working capital turnover 1.99 2.21 2.45 2.90 3.37 3.89 4.54 5.09 5.99 5.37 4.32 4.80 4.91 4.72 5.07 4.42 5.25 5.01 4.86 4.37

Mueller Industries Inc's inventory turnover has been relatively stable over the past few quarters, ranging from 5.98 to 7.30 times. This indicates that the company is efficiently managing its inventory levels and converting inventory into sales. The current ratio is 6.54, showing that on average, inventory is sold and replaced about 6.54 times during the year.

In terms of receivables turnover, the company has shown variability in its collection efficiency, with turnover ratios ranging from 5.74 to 10.50 times. The company has shown improvements in collecting receivables more frequently in recent quarters. The average receivables turnover is around 8.04, indicating that receivables are collected and replaced approximately 8.04 times during the year.

The payables turnover ratio has also seen fluctuations in the past quarters, with a range of 12.98 to 25.74 times. The company has been able to extend payment periods to suppliers, with an average turnover rate of 19.76, suggesting that payables are paid and replaced approximately 19.76 times during the year.

When looking at the working capital turnover, there is a declining trend in recent quarters, with the ratio decreasing from 5.99 to 4.37 times. This indicates that the company's efficiency in utilizing working capital has declined over time.

Overall, the analysis of Mueller Industries Inc's activity ratios reveals its effectiveness in managing inventory, collecting receivables, and paying payables, although there are some fluctuations in performance.

Average number of days

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
Days of inventory on hand (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
Days of sales outstanding (DSO) days 37.48 41.84 45.45 — 34.77 39.56 53.62 53.45 45.18 51.05 63.62 62.82 54.77 51.90 44.62 46.91 40.88 48.09 46.91 45.91
Number of days of payables days 16.91 19.25 20.31 22.09 15.19 19.20 23.54 25.76 21.05 22.26 25.68 28.13 25.20 19.46 16.75 15.59 14.18 16.77 17.01 17.23

Mueller Industries Inc's activity ratios indicate the management of its inventory, receivables, and payables.

1. Days of Inventory on Hand (DOH): The company has shown relative stability in managing its inventory levels over the last few quarters, with an average of approximately 53 days. In the latest quarter, the DOH increased slightly to 53.36 days, which may indicate a slightly slower turnover of inventory compared to the previous quarter.

2. Days of Sales Outstanding (DSO): Mueller Industries Inc's DSO has fluctuated somewhat, ranging from 34.77 days to 63.62 days over the analyzed periods. In the most recent quarter, the DSO decreased to 37.48 days, indicating a more efficient collection of receivables compared to the previous quarter.

3. Number of Days of Payables: The company's payables period has been on an upward trend, increasing from an average of around 16 days to 22 days. This suggests that Mueller Industries Inc is taking longer to pay its suppliers, possibly indicating stretched payment terms or delays in settlement.

Overall, Mueller Industries Inc should continue to monitor its activity ratios to ensure optimal inventory management, efficient collection of receivables, and balanced payment practices to maintain liquidity and operational efficiency.

Long-term

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
Fixed asset turnover 8.89 9.48 9.54 10.45 10.51 10.88 10.73 10.55 9.89 9.54 8.07 6.76 6.33 6.10 6.17 6.55 6.64 6.71 6.75 6.66
Total asset turnover 1.24 1.34 1.43 1.59 1.78 1.93 2.03 2.06 2.20 2.04 1.74 1.53 1.56 1.59 1.69 1.66 1.76 1.73 1.74 1.67

Mueller Industries Inc's fixed asset turnover ratio has exhibited fluctuations over the period analyzed. The ratio has generally been high, indicating that the company efficiently utilizes its fixed assets to generate sales. However, there has been a slight decreasing trend in the fixed asset turnover ratio from December 2022 to December 2023, which could suggest a decrease in the efficiency of utilizing fixed assets to generate revenue.

On the other hand, the total asset turnover ratio of Mueller Industries Inc has shown a generally increasing trend over the period studied. This indicates that the company has been more effective in generating sales relative to its total assets. The increasing trend in total asset turnover suggests improved efficiency in utilizing all assets, including fixed and current assets, to generate revenue.

Overall, while the fixed asset turnover ratio shows some fluctuations and a slight decrease, the total asset turnover ratio illustrates a positive trend of improved efficiency in asset utilization for revenue generation by Mueller Industries Inc.