Mueller Industries Inc (MLI)
Working capital turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 3,768,770 | 3,420,340 | 3,982,460 | 3,769,340 | 2,398,040 |
| Total current assets | US$ in thousands | 1,099,840 | 2,040,020 | 1,534,650 | 1,019,000 | 825,361 |
| Total current liabilities | US$ in thousands | 397,987 | 317,138 | 348,295 | 382,439 | 339,643 |
| Working capital turnover | 5.37 | 1.99 | 3.36 | 5.92 | 4.94 |
December 31, 2024 calculation
Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $3,768,770K ÷ ($1,099,840K – $397,987K)
= 5.37
Mueller Industries Inc's working capital turnover has shown fluctuations over the past five years. The working capital turnover ratio measures how effectively the company utilizes its working capital to generate sales revenue.
The working capital turnover ratio increased from 4.94 in December 31, 2020, to 5.92 in December 31, 2021, indicating that the company was able to generate more revenue using its working capital in 2021.
However, there was a significant decrease in the ratio to 3.36 in December 31, 2022, suggesting a decrease in efficiency in utilizing working capital for generating sales. The ratio further dropped to 1.99 in December 31, 2023, indicating a substantial decline in the company's ability to convert its working capital into sales revenue.
Subsequently, there was a notable improvement in the working capital turnover ratio to 5.37 in December 31, 2024, reflecting a positive trend in the company's efficiency in utilizing working capital for generating revenue.
Overall, Mueller Industries Inc's working capital turnover ratio has been volatile, with some years showing better efficiency in utilizing working capital to drive sales, while other years experiencing a decline in this aspect.
Peer comparison
Dec 31, 2024