Mueller Industries Inc (MLI)
Interest coverage
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 820,872 | 821,173 | 792,481 | 810,541 | 846,453 | 854,225 | 870,480 | 900,460 | 876,364 | 862,110 | 887,462 | 774,886 | 654,522 | 526,304 | 365,251 | 261,741 | 209,384 | 209,406 | 190,029 | 186,843 |
| Interest expense (ttm) | US$ in thousands | 410 | 1,048 | 1,165 | 1,193 | 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 |
| Interest coverage | 2,002.13 | 783.56 | 680.24 | 679.41 | 693.25 | 1,310.16 | 1,111.72 | 1,132.65 | 1,081.93 | 933.02 | 528.57 | 228.04 | 84.90 | 45.92 | 23.98 | 14.27 | 10.88 | 10.07 | 8.62 | 7.75 |
December 31, 2024 calculation
Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $820,872K ÷ $410K
= 2,002.13
Mueller Industries Inc's interest coverage ratio has shown a significant improvement over the period from March 31, 2020, to December 31, 2024. The interest coverage ratio measures the company's ability to meet its interest obligations with its earnings before interest and taxes (EBIT).
The ratio started at 7.75 on March 31, 2020, indicating that the company's earnings were 7.75 times its interest expense. It steadily increased over time, reaching a peak of 1,310.16 on September 30, 2023, before dropping to 693.25 on December 31, 2023, and further declining to 679.41 on March 31, 2024. This decline could raise concerns about the company's ability to cover its interest expenses during those periods.
However, the ratio rebounded to 2,002.13 on December 31, 2024, suggesting a significant improvement in the company's ability to cover its interest payments with its operating income.
Overall, the trend in Mueller Industries Inc's interest coverage ratio shows fluctuations but generally indicates a strong ability to meet its interest obligations with its operating income, with some periods of lower coverage ratios that may require further analysis and monitoring.
Peer comparison
Dec 31, 2024