Mueller Industries Inc (MLI)
Working capital 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 |
| Total current assets | US$ in thousands | 2,040,020 | 1,534,650 | 1,019,000 | 825,361 | 693,772 |
| Total current liabilities | US$ in thousands | 317,138 | 348,295 | 382,439 | 339,643 | 234,287 |
| Working capital turnover | 1.99 | 3.36 | 5.99 | 4.87 | 5.24 |
December 31, 2023 calculation
Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $3,426,400K ÷ ($2,040,020K – $317,138K)
= 1.99
The working capital turnover ratio measures the efficiency with which a company utilizes its working capital to generate sales revenue. A higher ratio indicates a more effective utilization of working capital.
Mueller Industries Inc's working capital turnover has shown fluctuations over the past five years. In 2023, the ratio decreased to 1.99 from 3.36 in 2022, indicating a decline in the efficiency of working capital utilization to generate sales. However, it is important to note that a single year's data may not provide a comprehensive view, and it would be beneficial to analyze trends over multiple years.
The ratios in 2021, 2020, and 2019 show a significant improvement in working capital turnover, with ratios of 5.99, 4.87, and 5.24 respectively. These high ratios suggest that Mueller Industries Inc managed its working capital effectively during those years to generate sales revenue efficiently.
Overall, the trend in the working capital turnover ratio for Mueller Industries Inc shows variability, with periods of both high and low efficiency in utilizing working capital to generate sales revenue. Further analysis and monitoring of this ratio will be necessary to assess the company's ongoing financial health and operational efficiency.
Peer comparison
Dec 31, 2023