Mueller Industries Inc (MLI)
Cash ratio
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 1,037,230 | 965,116 | 825,655 | 1,357,950 | 1,170,890 | 979,790 | 771,317 | 611,399 | 461,018 | 483,496 | 202,501 | 139,255 | 87,924 | 104,789 | 110,681 | 129,876 | 119,075 | 113,640 | 123,610 | 154,283 |
| Short-term investments | US$ in thousands | 21,874 | 4,449 | 102 | 102 | 98,146 | 124,680 | 127,051 | 170,997 | 217,863 | 102 | 102 | — | — | 65,000 | 36,899 | — | 37,976 | 27,423 | 32,443 | 44,683 |
| 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 |
| Cash ratio | 2.66 | 2.46 | 2.13 | 3.76 | 4.00 | 3.42 | 2.61 | 1.92 | 1.95 | 1.29 | 0.48 | 0.31 | 0.23 | 0.45 | 0.41 | 0.29 | 0.46 | 0.56 | 0.68 | 0.87 |
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
Mueller Industries Inc's cash ratio has shown fluctuations over the past few years. The cash ratio measures the company's ability to cover its short-term liabilities with its cash and cash equivalents.
Starting at 0.87 on March 31, 2020, the cash ratio decreased steadily to 0.23 on December 31, 2021, indicating a decline in the company's ability to meet its short-term obligations solely with cash on hand.
However, from December 31, 2021, the trend reversed, and the cash ratio began to increase significantly. By March 31, 2024, the cash ratio had reached 3.76 and then slightly decreased to 2.66 by December 31, 2024.
This increasing trend indicates that Mueller Industries Inc has improved its liquidity position over the past few years and has a stronger ability to cover its short-term liabilities with cash and cash equivalents.
It is important to note that while a higher cash ratio is generally favorable as it indicates a stronger liquidity position, excessively high levels of cash may also indicate that the company is not effectively utilizing its cash resources to generate returns. It is vital for the company to strike a balance between liquidity and profitability.
Peer comparison
Dec 31, 2024