Mueller Industries Inc (MLI)
Solvency ratios
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.00 | 0.00 | 0.00 | 0.19 | 0.28 |
| Debt-to-capital ratio | 0.00 | 0.00 | 0.00 | 0.27 | 0.37 |
| Debt-to-equity ratio | 0.00 | 0.00 | 0.00 | 0.37 | 0.59 |
| Financial leverage ratio | 1.18 | 1.25 | 1.41 | 1.97 | 2.13 |
Mueller Industries Inc has consistently maintained a very strong solvency position based on its solvency ratios over the past five years. The debt-to-assets, debt-to-capital, and debt-to-equity ratios all indicate that the company has had insignificant levels of debt relative to its total assets, capital, and equity.
Specifically, the debt-to-assets ratio has been at 0.00 for the last five years, indicating that the company has had no debt as a proportion of its total assets during this period. Similarly, the debt-to-capital ratio has also been consistently at 0.00, reflecting a lack of debt relative to the company's total capital.
The debt-to-equity ratio has also been very low, implying a minimal level of debt compared to shareholder equity. The decreasing trend of this ratio from 0.59 in 2019 to 0.00 in 2023 further indicates an improvement in the company's debt structure and a strengthening of its financial position.
Furthermore, the financial leverage ratio has decreased from 2.13 in 2019 to 1.18 in 2023, signaling a reduction in financial leverage and a lower reliance on debt financing. This trend suggests that Mueller Industries Inc has been effectively managing its debt levels and improving its financial stability over the years.
Overall, based on the solvency ratios, Mueller Industries Inc appears to be in a solid financial position with low debt levels and a strong capacity to meet its financial obligations.
Coverage ratios
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Interest coverage | 675.58 | 1,089.44 | 83.29 | 11.12 | 6.30 |
The interest coverage ratio of Mueller Industries Inc has shown a significant improvement over the past five years. In 2023, the interest coverage ratio reached a high of 675.58, indicating that the company's operating income is significantly higher than its interest expenses. This represents a substantial improvement compared to the ratios of 1,089.44 in 2022, 83.29 in 2021, 11.12 in 2020, and 6.30 in 2019.
The trend of increasing interest coverage ratios suggests that Mueller Industries Inc has been able to generate sufficient earnings to cover its interest expenses, reflecting improved financial health and reduced financial risk. The notable surge in the interest coverage ratio from 2019 to 2020 and the subsequent steady increase in the following years indicate a strengthening of the company's ability to service its debt obligations.
Overall, the trend in Mueller Industries Inc's interest coverage ratio signals an improvement in the company's financial performance and highlights its capacity to meet interest payments comfortably.