Mueller Industries Inc (MLI)
Liquidity ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Current ratio | 5.06 | 4.86 | 4.66 | 6.05 | 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 |
| Quick 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 |
| 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 |
Based on the provided data, we can analyze the liquidity ratios of Mueller Industries Inc over the last few years.
1. Current Ratio: The current ratio indicates the company's ability to cover its short-term liabilities with its short-term assets. Mueller Industries Inc's current ratio has shown variations over the period, ranging from a low of 2.22 in March 2021 to a high of 6.43 in December 2023. The ratio generally improved from 2020 to 2023, indicating the company's strengthened ability to meet its short-term obligations. However, there was a slight decline in the current ratio in the most recent period, ending December 2024.
2. Quick Ratio: The quick ratio provides a more stringent measure of liquidity as it excludes inventory from current assets. Mueller Industries Inc's quick ratio also experienced fluctuations during the period, with the lowest point at 0.23 in December 2021 and the highest at 4.00 in December 2023. The quick ratio generally improved significantly from 2020 to 2023, suggesting the company's enhanced ability to meet short-term obligations without relying on inventory. Like the current ratio, there was a slight decrease in the quick ratio in the last quarter of 2024.
3. Cash Ratio: The cash ratio is the most conservative liquidity ratio, focusing only on the company's ability to cover its current liabilities with cash and cash equivalents. Mueller Industries Inc's cash ratio followed a similar trend as the quick ratio, reflecting fluctuations over the years. The cash ratio ranged from a low of 0.23 in December 2021 to a high of 4.00 in December 2023, indicating a strong cash position in the latter period. However, similar to the current and quick ratios, there was a slight decline in the cash ratio in December 2024.
In summary, Mueller Industries Inc's liquidity ratios have shown variations over the years, with overall improvements in liquidity and short-term solvency up to 2023. However, there was a slight decline in these ratios in the most recent quarter of December 2024, suggesting a potential need for further monitoring of liquidity levels to ensure the company's ability to meet its short-term obligations.
Additional liquidity measure
| 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 conversion cycle | days | 61.94 | 56.15 | 60.31 | 54.90 | 56.82 | 56.79 | 64.94 | 58.53 | 56.70 | 55.38 | 56.75 | 57.13 | 53.43 | 53.52 | 55.71 | 62.75 | 58.48 | 53.18 | 47.65 | 48.50 |
Mueller Industries Inc's cash conversion cycle has shown fluctuations over the period from March 31, 2020, to December 31, 2024. The cash conversion cycle represents the time it takes for a company to convert its investments in inventory into cash flows from sales.
The company's cash conversion cycle ranged from a low of 47.65 days in June 2020 to a high of 64.94 days in June 2023. Generally, a shorter cash conversion cycle indicates a more efficient management of working capital, as the company is able to quickly convert inventory into sales and then into cash.
It is notable that the cash conversion cycle increased significantly towards mid-2023 but later decreased in the following periods. This fluctuation may reflect changes in inventory management, sales efficiency, or payment practices with suppliers and customers.
Overall, while Mueller Industries Inc's cash conversion cycle has shown variability, it is essential for the company to continuously monitor and improve this metric to optimize working capital management and enhance overall financial performance.