Mueller Industries Inc (MLI)
Quick ratio
| 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 | US$ in thousands | 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 | 97,944 | 100,338 | 91,440 | 97,596 |
| Short-term investments | US$ in thousands | 98,146 | 124,680 | 127,051 | 170,997 | 217,863 | — | — | — | 0 | 65,000 | 36,899 | — | 37,976 | 27,423 | 32,443 | 44,683 | 48,363 | 46,369 | 47,692 | 50,733 |
| Receivables | US$ in thousands | 351,561 | 409,187 | 459,467 | — | 380,352 | 441,287 | 611,578 | 588,397 | 471,859 | 493,960 | 542,044 | 447,492 | 357,532 | 320,035 | 273,710 | 308,836 | 269,943 | 319,562 | 316,806 | 309,765 |
| Total current liabilities | US$ in thousands | 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 | 234,287 | 246,769 | 226,754 | 220,529 |
| 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 |
December 31, 2023 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($1,170,890K
+ $98,146K
+ $351,561K)
÷ $317,138K
= 5.11
The quick ratio, also known as the acid-test ratio, measures a company's ability to meet its short-term obligations with its most liquid assets. A quick ratio above 1 indicates that a company can cover its current liabilities without relying on the sale of inventory.
Analyzing Mueller Industries Inc's quick ratio over the past few quarters, we note a general upward trend from March 2020 to December 2020. However, there was a decline in the quick ratio from September 2021 to June 2022, followed by a significant increase reaching a peak of 5.11 in December 2023.
The quick ratio of 5.11 in December 2023 indicates that Mueller Industries Inc had $5.11 in liquid assets available to cover each dollar of current liabilities. This signifies a strong ability to meet short-term obligations without relying heavily on inventory sales.
It is essential to monitor changes in the quick ratio over time as a very high quick ratio may suggest an inefficient use of assets, while a low quick ratio may indicate a liquidity risk. In the case of Mueller Industries Inc, the improving trend in the quick ratio signals a strengthening liquidity position, which is generally a positive sign for investors and creditors.
Peer comparison
Dec 31, 2023