Mueller Industries Inc (MLI)
Operating return on assets (Operating ROA)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Operating income | US$ in thousands | 756,053 | 877,149 | 655,845 | 245,838 | 191,403 |
| Total assets | US$ in thousands | 2,759,300 | 2,242,400 | 1,728,940 | 1,528,570 | 1,370,940 |
| Operating ROA | 27.40% | 39.12% | 37.93% | 16.08% | 13.96% |
December 31, 2023 calculation
Operating ROA = Operating income ÷ Total assets
= $756,053K ÷ $2,759,300K
= 27.40%
Mueller Industries Inc's operating return on assets (ROA) has fluctuated over the past five years. The trend shows an improvement in operating ROA from 2019 to 2022, with a significant increase from 13.96% in 2019 to 39.12% in 2022. However, in 2023, there was a decrease in operating ROA to 27.40%, which is still higher compared to the 2020 and 2021 levels.
The higher operating ROA indicates that Mueller Industries Inc is generating more operating income relative to its total assets, which is a positive sign of operational efficiency and profitability. However, the fluctuation in the ratio over the years may suggest changing business conditions or management strategies impacting the company's performance.
Overall, Mueller Industries Inc's operating ROA demonstrates a generally healthy level of efficiency in utilizing its assets to generate operating income, but continued monitoring of this ratio is advisable to assess the company's ongoing financial health and performance.
Peer comparison
Dec 31, 2023