Mueller Industries Inc (MLI)
Financial leverage ratio
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 2,759,300 | 2,663,740 | 2,576,420 | 2,479,620 | 2,242,400 | 2,109,750 | 2,046,970 | 1,945,950 | 1,728,940 | 1,728,540 | 1,789,440 | 1,698,330 | 1,528,570 | 1,420,010 | 1,323,390 | 1,445,940 | 1,370,940 | 1,402,760 | 1,417,070 | 1,475,050 |
| 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 |
| Financial leverage ratio | 1.18 | 1.20 | 1.22 | 1.26 | 1.25 | 1.30 | 1.36 | 1.42 | 1.41 | 1.56 | 1.89 | 2.02 | 1.97 | 1.98 | 1.97 | 2.24 | 2.13 | 2.31 | 2.41 | 2.61 |
December 31, 2023 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $2,759,300K ÷ $2,337,440K
= 1.18
The financial leverage ratio of Mueller Industries Inc has been fluctuating over the past few years. The ratio measures the company's level of debt relative to its equity. A higher financial leverage ratio indicates that the company relies more on debt financing, which could potentially amplify returns but also increase financial risk.
From the data provided, we can see that the financial leverage ratio has generally been increasing over the years. It ranged from a low of 1.18 in Dec 2023 to a high of 2.61 in Mar 2019. This increasing trend suggests that the company has been taking on more debt in relation to its equity, which may indicate a higher level of financial risk.
It is important for investors and stakeholders to closely monitor the financial leverage ratio of the company, especially as it continues to rise. A high financial leverage ratio could make the company more vulnerable to economic downturns or changes in interest rates, which may impact its overall financial health and ability to meet its debt obligations.
Peer comparison
Dec 31, 2023