Mueller Industries Inc (MLI)
Cash ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 1,037,230 | 1,170,890 | 461,018 | 87,924 | 119,075 |
| Short-term investments | US$ in thousands | 21,874 | 98,146 | 217,863 | 0 | 37,976 |
| Total current liabilities | US$ in thousands | 397,987 | 317,138 | 348,295 | 382,439 | 339,643 |
| Cash ratio | 2.66 | 4.00 | 1.95 | 0.23 | 0.46 |
December 31, 2024 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($1,037,230K
+ $21,874K)
÷ $397,987K
= 2.66
The cash ratio of Mueller Industries Inc has varied over the years, as evidenced by the following data:
- As of December 31, 2020, the cash ratio was 0.46, indicating that the company had $0.46 in cash for every $1 of current liabilities. This suggests a moderate liquidity position.
- By December 31, 2021, the cash ratio decreased to 0.23, implying a decline in the company's ability to cover its short-term obligations with cash on hand.
- However, the cash ratio improved significantly by December 31, 2022, reaching 1.95. This sharp increase indicates that the company had almost enough cash to cover all of its current liabilities, reflecting a strong liquidity position.
- The trend continued to strengthen by December 31, 2023, with a cash ratio of 4.00, signaling a robust ability to meet its short-term obligations with cash reserves.
- By December 31, 2024, the cash ratio decreased slightly to 2.66, but still remained at a healthy level, indicating that Mueller Industries Inc continued to maintain a solid liquidity position.
Overall, the cash ratio analysis shows fluctuations in the company's liquidity over the years, with notable improvements in recent periods. It is essential for investors and stakeholders to monitor the cash ratio to assess Mueller Industries Inc's ability to meet its short-term liabilities using its available cash resources.
Peer comparison
Dec 31, 2024