Mueller Water Products (MWA)
Inventory turnover
| Sep 30, 2024 | Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 855,700 | 896,200 | 883,100 | 752,500 | 635,900 |
| Inventory | US$ in thousands | 301,700 | 297,900 | 278,700 | 184,700 | 162,500 |
| Inventory turnover | 2.84 | 3.01 | 3.17 | 4.07 | 3.91 |
September 30, 2024 calculation
Inventory turnover = Cost of revenue ÷ Inventory
= $855,700K ÷ $301,700K
= 2.84
The inventory turnover ratios for Mueller Water Products over the analyzed period demonstrate a notable decline from September 30, 2020, to September 30, 2024. Specifically, the ratio was 3.91 in 2020, increased slightly to 4.07 in 2021, indicating an improved efficiency in inventory management during that year. However, from 2021 onward, the trend reverses, with the ratio decreasing to 3.17 in 2022, then further declining to 3.01 in 2023, and reaching 2.84 in 2024. This overall downward trajectory suggests that the company has experienced diminishing efficiency in turning over its inventory over the four-year period. The decrease implies that inventory is being held longer on average relative to sales, which could potentially impact liquidity, carry higher holding costs, and reflect changes in inventory management effectiveness or shifts in sales dynamics.
Peer comparison
Sep 30, 2024