Mueller Industries Inc (MLI)
Interest coverage
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 824,880 | 882,448 | 642,087 | 214,061 | 161,912 |
| Interest expense | US$ in thousands | 1,221 | 810 | 7,709 | 19,247 | 25,683 |
| Interest coverage | 675.58 | 1,089.44 | 83.29 | 11.12 | 6.30 |
December 31, 2023 calculation
Interest coverage = EBIT ÷ Interest expense
= $824,880K ÷ $1,221K
= 675.58
The interest coverage ratio for Mueller Industries Inc has shown significant improvement over the past five years. The ratio increased from 6.30 in 2019 to 675.58 in 2023, reflecting the company's improved ability to cover its interest expenses with operating profits. This upward trend indicates a strengthening financial position and suggests that the company's earnings are more than sufficient to cover its interest obligations. The substantial increase in the interest coverage ratio signifies enhanced financial stability and reduced risk of default on debt payments. Overall, Mueller Industries Inc's interest coverage has shown consistent growth, marked by a notable improvement in the most recent years.
Peer comparison
Dec 31, 2023