Mueller Industries Inc (MLI)
Solvency ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-capital ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-equity ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Financial leverage ratio | 1.19 | 1.18 | 1.25 | 1.41 | 1.97 |
Mueller Industries Inc demonstrates strong solvency based on its solvency ratios. The debt-to-assets ratio, debt-to-capital ratio, and debt-to-equity ratio have all been consistently at 0.00 from 2020 to 2024, indicating that the company has minimal debt in relation to its assets, capital, and equity.
Furthermore, the financial leverage ratio shows a declining trend from 1.97 in 2020 to 1.19 in 2024. This indicates that the company's reliance on debt financing has reduced over the years, which is a positive sign for its solvency position.
Overall, the solvency ratios suggest that Mueller Industries Inc has a strong financial position with minimal debt levels and prudent leverage, enhancing its ability to meet its financial obligations and withstand economic uncertainties.
Coverage ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Interest coverage | 2,002.13 | 693.25 | 1,082.52 | 78.20 | 11.87 |
Interest coverage represents Mueller Industries Inc's ability to cover its interest expenses with its operating income. A higher interest coverage ratio indicates that the company is more capable of meeting its interest obligations.
Analyzing the trend in Mueller Industries Inc's interest coverage ratio over the years shows a significant improvement. The interest coverage ratio has demonstrated a strong increase from 11.87 in 2020 to 78.20 in 2021. This improvement indicates that the company's operating income has become more than sufficient to cover its interest expenses.
Moreover, the interest coverage ratio surged to 1,082.52 in 2022, showing a substantial strengthening of Mueller Industries Inc's financial position. This exceptionally high ratio suggests a very robust ability to cover interest payments with operating income.
While there was a slight decrease in the interest coverage ratio to 693.25 in 2023, the ratio remains at a healthy level, indicating the company's continued ability to comfortably cover interest costs.
In 2024, the interest coverage ratio of 2,002.13 signifies a further improvement in Mueller Industries Inc's financial health, demonstrating an extremely strong capacity to handle interest payments.
In conclusion, the trend in Mueller Industries Inc's interest coverage ratio reflects a consistent and substantial enhancement in the company's ability to meet its interest obligations. This positive trajectory indicates a strong financial position and a reduced risk of financial distress related to interest payments.