Mueller Industries Inc (MLI)
Cash conversion cycle
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 52.30 | 53.29 | 50.06 | 53.73 | 48.36 |
| Days of sales outstanding (DSO) | days | 37.45 | 34.80 | 45.16 | 55.14 | 40.95 |
| Number of days of payables | days | 16.57 | 15.19 | 21.03 | 25.20 | 14.18 |
| Cash conversion cycle | days | 73.18 | 72.90 | 74.18 | 83.68 | 75.13 |
December 31, 2023 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 52.30 + 37.45 – 16.57
= 73.18
The cash conversion cycle of Mueller Industries Inc has fluctuated over the past five years. In 2023, the company's cash conversion cycle was 73.18 days, a slight increase from the previous year. This indicates that the company takes approximately 73 days to convert its investments in raw materials into cash received from sales and then reinvest that cash back into raw materials.
Comparing to 2021 and 2020, there was a slight improvement in the cash conversion cycle in 2022 and 2023. In 2020, the cash conversion cycle was higher, indicating that the company took longer to convert its investments into cash compared to the current year.
Overall, the company seems to have been able to manage its cash conversion cycle more efficiently in recent years, which is a positive sign for its working capital management. However, further analysis and comparison with industry benchmarks would provide more insights into the company's efficiency in managing its cash conversion cycle.
Peer comparison
Dec 31, 2023