Mueller Industries Inc (MLI)
Working capital 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (ttm) | US$ in thousands | 3,768,766 | 3,577,607 | 3,399,568 | 3,298,807 | 3,420,345 | 3,565,549 | 3,690,587 | 3,943,643 | 3,982,451 | 4,061,227 | 4,098,645 | 3,961,195 | 3,769,343 | 3,488,837 | 3,125,694 | 2,613,272 | 2,398,043 | 2,266,031 | 2,255,528 | 2,421,754 |
| Total current assets | US$ in thousands | 2,012,230 | 1,915,580 | 1,804,790 | 2,184,610 | 2,040,020 | 1,936,770 | 1,851,740 | 1,767,010 | 1,534,650 | 1,420,920 | 1,335,760 | 1,240,550 | 1,019,000 | 1,037,940 | 1,082,000 | 986,535 | 825,361 | 729,865 | 670,691 | 774,126 |
| Total current liabilities | US$ in thousands | 397,987 | 393,993 | 387,228 | 361,281 | 317,138 | 322,505 | 344,548 | 406,745 | 348,295 | 374,947 | 418,771 | 451,596 | 382,439 | 380,098 | 362,429 | 444,488 | 339,643 | 252,752 | 229,264 | 229,899 |
| Working capital turnover | 2.33 | 2.35 | 2.40 | 1.81 | 1.99 | 2.21 | 2.45 | 2.90 | 3.36 | 3.88 | 4.47 | 5.02 | 5.92 | 5.30 | 4.34 | 4.82 | 4.94 | 4.75 | 5.11 | 4.45 |
December 31, 2024 calculation
Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $3,768,766K ÷ ($2,012,230K – $397,987K)
= 2.33
The working capital turnover ratio for Mueller Industries Inc has shown fluctuations over the years. The ratio measures how efficiently the company is utilizing its working capital to generate sales revenue.
From March 31, 2020, to December 31, 2021, the working capital turnover ratio has shown a generally increasing trend, indicating an improvement in the company's efficiency in utilizing its working capital. The ratio ranged from 4.45 to 5.92 during this period.
However, from March 31, 2022, to December 31, 2024, the working capital turnover ratio experienced a declining trend, dropping from 5.02 to 2.33. This downward trend suggests a potential inefficiency in managing working capital to generate sales.
The decrease in the working capital turnover ratio could indicate that the company may be holding excess working capital relative to its level of sales, leading to a less efficient use of resources. It may also imply issues such as slow-moving inventory or inefficient accounts receivable management.
Overall, monitoring the working capital turnover ratio for Mueller Industries Inc is crucial to evaluate the company's liquidity and operational efficiency, as well as to identify any potential areas of improvement in working capital management.
Peer comparison
Dec 31, 2024