Mueller Industries Inc (MLI)
Return on total capital
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 824,880 | 847,337 | 869,493 | 904,514 | 882,448 | 864,321 | 890,708 | 765,423 | 642,087 | 524,494 | 355,206 | 251,460 | 214,061 | 202,265 | 182,134 | 181,627 | 161,912 | 161,681 | 149,186 | 155,401 |
| Long-term debt | US$ in thousands | 185 | 1,301 | 1,267 | 1,251 | 1,218 | 1,184 | 1,131 | 1,098 | 1,064 | 121,012 | 350,996 | 286,576 | 286,593 | 342,972 | 323,114 | 468,234 | 378,724 | 434,082 | 479,276 | 559,836 |
| Total stockholders’ equity | US$ in thousands | 2,337,440 | 2,221,240 | 2,116,230 | 1,962,310 | 1,790,910 | 1,625,240 | 1,510,460 | 1,370,400 | 1,222,120 | 1,107,560 | 945,716 | 841,146 | 776,745 | 717,621 | 670,681 | 645,687 | 643,468 | 607,648 | 588,271 | 565,398 |
| Return on total capital | 35.29% | 38.12% | 41.06% | 46.06% | 49.24% | 53.14% | 58.93% | 55.81% | 52.49% | 42.69% | 27.39% | 22.30% | 20.13% | 19.07% | 18.33% | 16.31% | 15.84% | 15.52% | 13.97% | 13.81% |
December 31, 2023 calculation
Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $824,880K ÷ ($185K + $2,337,440K)
= 35.29%
Mueller Industries Inc's return on total capital has exhibited fluctuating trends over the past few quarters. The ratio has generally been trending upwards, starting at 13.81% in March 2019 and reaching a peak of 58.93% in June 2022 before declining slightly. This indicates that the company has been effective in generating profits relative to the total capital employed in its business operations.
The return on total capital peaked at 58.93% in June 2022 and has since declined to 35.29% by December 2023. Despite this decrease, the ratio remains relatively high, suggesting that Mueller Industries Inc continues to efficiently utilize its capital to generate returns for its investors.
It is important to note that a high return on total capital indicates that the company is effectively managing its assets and liabilities to generate profits. However, fluctuations in this ratio over time may signify changes in the company's financial performance and efficiency in capital allocation. Further analysis of the company's financial statements and business strategies may provide additional insights into the drivers behind the variations in return on total capital.
Peer comparison
Dec 31, 2023