Mueller Industries Inc (MLI)
Interest coverage
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 824,880 | 847,337 | 869,493 | 904,514 | 882,448 | 864,321 | 890,708 | 765,423 | 642,087 | 524,494 | 355,206 | 251,460 | 214,061 | 202,265 | 182,134 | 181,627 | 161,912 | 161,681 | 149,186 | 155,401 |
| Interest expense (ttm) | US$ in thousands | 1,221 | 652 | 783 | 795 | 810 | 924 | 1,679 | 3,398 | 7,709 | 11,461 | 15,230 | 18,337 | 19,247 | 20,785 | 22,048 | 24,108 | 25,683 | 26,606 | 27,204 | 26,244 |
| Interest coverage | 675.58 | 1,299.60 | 1,110.46 | 1,137.75 | 1,089.44 | 935.41 | 530.50 | 225.26 | 83.29 | 45.76 | 23.32 | 13.71 | 11.12 | 9.73 | 8.26 | 7.53 | 6.30 | 6.08 | 5.48 | 5.92 |
December 31, 2023 calculation
Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $824,880K ÷ $1,221K
= 675.58
The interest coverage ratio for Mueller Industries Inc has fluctuated over the periods presented. The ratio measures the company's ability to meet its interest obligations with its earnings before interest and taxes (EBIT).
From Dec 2019 to Dec 2021, the interest coverage ratio improved significantly, indicating that the company was comfortably able to cover its interest expenses with its earnings. From Dec 2021 to Dec 2023, the ratio remained high, further indicating the company's strong ability to service its debt.
The high interest coverage ratios suggest that Mueller Industries Inc has sufficient earnings to cover its interest expenses, which is a positive sign for investors and creditors. However, the decrease in the interest coverage in recent quarters should be monitored closely to ensure that the company's financial health remains strong.
Peer comparison
Dec 31, 2023