Mueller Industries Inc (MLI)
Financial leverage ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 2,759,300 | 2,242,400 | 1,728,940 | 1,528,570 | 1,370,940 |
| Total stockholders’ equity | US$ in thousands | 2,337,440 | 1,790,910 | 1,222,120 | 776,745 | 643,468 |
| Financial leverage ratio | 1.18 | 1.25 | 1.41 | 1.97 | 2.13 |
December 31, 2023 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $2,759,300K ÷ $2,337,440K
= 1.18
The financial leverage ratio for Mueller Industries Inc has been gradually decreasing from 2.13 in 2019 to 1.18 in 2023. This indicates that the company has been reducing its dependence on debt to finance its operations and investments over the years. A lower financial leverage ratio generally suggests a lower level of financial risk and greater financial stability for the company. This decreasing trend may imply that Mueller Industries Inc is becoming more efficient in managing its capital structure and leveraging its equity to support growth and profitability. It is worth noting that a financial leverage ratio below 1 indicates that the company has more equity than debt in its capital structure, which can be seen as a positive sign by investors and stakeholders.
Peer comparison
Dec 31, 2023