Mueller Industries Inc (MLI)
Liquidity ratios
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Current ratio | 6.43 | 4.41 | 2.66 | 2.43 | 2.96 |
| Quick ratio | 5.11 | 3.04 | 1.46 | 1.52 | 1.78 |
| Cash ratio | 4.00 | 1.95 | 0.23 | 0.46 | 0.62 |
Mueller Industries Inc's liquidity ratios have shown a positive trend over the past five years, indicating an improvement in the company's ability to meet its short-term obligations.
The current ratio, which measures the company's ability to cover its short-term liabilities with its current assets, increased from 2.96 in 2019 to 6.43 in 2023. This suggests that the company has significantly strengthened its liquidity position over this period.
Similarly, the quick ratio, which excludes inventory from current assets to provide a more conservative measure of liquidity, also showed a consistent improvement, rising from 1.78 in 2019 to 5.11 in 2023. This indicates that Mueller Industries Inc has a sufficient level of liquid assets to cover its short-term liabilities without relying on selling inventory.
The cash ratio, which is the most stringent liquidity measure as it only considers cash and cash equivalents, has also shown a positive trend, increasing from 0.62 in 2019 to 4.00 in 2023. This signifies that the company has significantly enhanced its ability to cover immediate liabilities with available cash resources.
Overall, the increasing trend in all three liquidity ratios reflects Mueller Industries Inc's strong financial position and improved ability to manage its short-term financial obligations effectively.
Additional liquidity measure
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cash conversion cycle | days | 73.18 | 72.90 | 74.18 | 83.68 | 75.13 |
The cash conversion cycle for Mueller Industries Inc has shown some fluctuation over the past five years. In 2023, the company's cash conversion cycle was 73.18 days, a slight increase from the previous year's 72.90 days. This indicates that the company took slightly longer to convert its investments in inventory into cash in 2023.
Comparing to 2021 and 2020, where the cash conversion cycle was 74.18 days and 83.68 days, respectively, the company improved its efficiency in managing its working capital in terms of converting inventory into cash in 2023. This suggests a positive trend in the company's operations.
However, when compared to 2019, where the cash conversion cycle was 75.13 days, the company's efficiency in managing its working capital was slightly better in 2023. Overall, while there have been fluctuations in the cash conversion cycle over the past five years, the trend in 2023 shows a relatively stable and efficient performance in terms of managing the company's working capital and converting investments in inventory into cash.