Mueller Industries Inc (MLI)

Liquidity ratios

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 Dec 31, 2019 Sep 30, 2019 Jun 30, 2019 Mar 31, 2019
Current ratio 6.43 6.01 5.37 4.34 4.41 3.79 3.19 2.75 2.66 2.73 2.99 2.22 2.43 2.89 2.93 3.37 2.96 2.96 3.24 3.56
Quick ratio 5.11 4.69 3.94 1.92 3.04 2.47 1.94 1.61 1.46 1.75 1.90 1.30 1.52 1.82 1.87 2.21 1.78 1.89 2.01 2.08
Cash ratio 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 0.62 0.59 0.61 0.67

The liquidity ratios of Mueller Industries Inc indicate the company's ability to meet its short-term financial obligations. The current ratio has shown an improving trend over the past five quarters, increasing from 2.96 in March 2020 to 6.43 in December 2023. This indicates that the company has significantly strengthened its ability to cover current liabilities with current assets.

Similarly, the quick ratio, which provides a more stringent measure of liquidity by excluding inventory from current assets, has also shown a positive trend, improving from 1.78 in March 2019 to 5.11 in December 2023. This suggests that Mueller Industries has a strong ability to meet its short-term obligations without relying on the sale of inventory.

The cash ratio, which is the most conservative liquidity ratio, has also displayed an upward trend, indicating the company's improving ability to cover its current liabilities with cash and cash equivalents alone. The cash ratio has increased from 0.59 in March 2019 to 4.00 in December 2023.

Overall, the liquidity ratios of Mueller Industries Inc demonstrate a strong financial position with ample liquid assets to cover short-term financial obligations, reflecting sound liquidity management by the company's management team.

Additional liquidity measure

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 Dec 31, 2019 Sep 30, 2019 Jun 30, 2019 Mar 31, 2019
Cash conversion cycle days 73.93 75.72 86.13 33.72 72.86 72.62 83.72 81.31 74.23 78.81 89.87 92.72 83.30 81.30 71.62 75.99 75.06 76.92 78.08 84.04

The cash conversion cycle of Mueller Industries Inc has fluctuated over the past few quarters. The cash conversion cycle represents the time it takes for the company to convert its investments in inventory and other resources into cash flows from sales.

In the most recent quarter, ending on December 31, 2023, the cash conversion cycle was 73.93 days. This indicates that it takes the company almost 74 days to recover its investment in inventory through sales and receive cash.

Looking back over the past few quarters, we see variations in the cash conversion cycle. In some quarters, such as March 31, 2023 and December 31, 2022, the cycle was particularly short at 33.72 days and 72.86 days respectively, indicating a more efficient conversion of resources into cash flows.

On the other hand, in certain quarters like June 30, 2021 and September 30, 2021, the cash conversion cycle was longer, at 89.87 days and 92.72 days respectively. This suggests that the company faced challenges in efficiently managing its working capital during those periods.

Overall, fluctuations in the cash conversion cycle can be influenced by factors such as inventory management efficiency, sales and payment collection processes, and creditor payment terms. It is important for Mueller Industries Inc to closely monitor and manage its cash conversion cycle to optimize its working capital and cash flow management.