Mueller Water Products (MWA)

Days of inventory on hand (DOH)

Mar 31, 2025 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
Inventory turnover 2.88 2.79 2.84 2.83 2.71 2.71 3.01 2.97 2.91 2.93 3.14 3.35 3.56 3.71 4.07 4.04 3.69 3.92 3.91 3.56
DOH days 126.71 130.79 128.69 128.98 134.72 134.51 121.33 122.86 125.30 124.58 116.35 108.95 102.42 98.36 89.59 90.36 98.87 93.19 93.27 102.41

March 31, 2025 calculation

DOH = 365 ÷ Inventory turnover
= 365 ÷ 2.88
= 126.71

The analysis of Mueller Water Products' days of inventory on hand (DOH) over the period from June 2020 to March 2025 reveals notable fluctuations and an overarching upward trend. Initially, as of June 2020, the DOH was approximately 102.41 days, indicating the company maintained inventory levels sufficient for roughly three and a half months of operations.

Between June 2020 and September 2020, there was a decrease of approximately 9 days, reaching 93.27 days, which suggested a brief period of inventory reduction. Following this, the DOH remained relatively stable through the end of 2020, with values close to 93 days. However, from the beginning of 2021 onward, a gradual increase commenced. By March 2021, DOH rose slightly to about 98.87 days, continuing an upward trajectory through 2021, with slightly fluctuating figures but generally remaining under 100 days until September 2021.

Starting in late 2021 and into 2022, the DOH exhibited continuous growth, reaching approximately 124.58 days by the end of 2022. This incremental increase persisted into 2023, with the figure surpassing 125 days at the end of the first quarter and maintaining elevated levels through June, September, and December 2023. In this period, the DOH peaked at 134.51 days at the year's end.

Entering 2024, the days of inventory on hand remained elevated, averaging around 130 days, with minor fluctuations. The data for the first quarter of 2025 indicates a slight decrease to approximately 126.71 days, but the overall level of inventory still reflects a significant increase compared to initial readings in 2020.

The observed trend indicates a remarkable expansion in inventory levels over this period. The increase in DOH suggests that Mueller Water Products has been holding more inventory relative to its sales volume. This could imply strategic inventory buildup, possibly in response to supply chain considerations, inventory management practices, or anticipation of increased demand. Alternatively, it may reflect challenges in inventory turnover or operational efficiencies. The sustained high levels of days of inventory on hand warrant further analysis into underlying operational or market factors influencing inventory management strategies.