Mueller Industries Inc (MLI)
Cash conversion cycle
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 61.94 | 57.03 | 57.19 | 53.43 | 58.48 |
| Days of sales outstanding (DSO) | days | — | — | — | — | — |
| Number of days of payables | days | — | — | — | — | — |
| Cash conversion cycle | days | 61.94 | 57.03 | 57.19 | 53.43 | 58.48 |
December 31, 2024 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 61.94 + — – —
= 61.94
The cash conversion cycle of Mueller Industries Inc has shown fluctuations over the past five years. As of December 31, 2020, the company's cash conversion cycle stood at 58.48 days, indicating that it took approximately 58.48 days for the company to convert its investments in inventory and accounts receivables into cash.
By December 31, 2021, there was a slight improvement in the cash conversion cycle, which decreased to 53.43 days. This suggests that the company was able to manage its inventory and receivables more efficiently, reducing the time taken to convert them into cash.
However, by December 31, 2022, the cash conversion cycle increased to 57.19 days, indicating a longer time taken for the company to convert its investments into cash compared to the previous year. This may suggest challenges in managing inventory or accounts receivable collections during that period.
In the following year, as of December 31, 2023, there was a marginal reduction in the cash conversion cycle to 57.03 days, showing a slight improvement in the company's efficiency in converting investments into cash.
As of the latest available data on December 31, 2024, Mueller Industries Inc experienced a further increase in the cash conversion cycle, reaching 61.94 days, which indicates a longer period required to convert investments into cash compared to the previous year.
Overall, the trend in the cash conversion cycle of Mueller Industries Inc demonstrates some fluctuations over the five-year period, with varying levels of efficiency in managing inventory and accounts receivables to generate cash flow.
Peer comparison
Dec 31, 2024