Mueller Water Products (MWA)
Inventory turnover
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cost of revenue (ttm) | US$ in thousands | 900,200 | 886,900 | 855,700 | 831,400 | 832,600 | 844,700 | 896,200 | 929,000 | 937,400 | 920,000 | 883,100 | 846,600 | 816,800 | 778,200 | 752,500 | 714,600 | 662,300 | 654,900 | 635,900 | 642,600 |
| Inventory | US$ in thousands | 312,500 | 317,800 | 301,700 | 293,800 | 307,300 | 311,300 | 297,900 | 312,700 | 321,800 | 314,000 | 281,500 | 252,700 | 229,200 | 209,700 | 184,700 | 176,900 | 179,400 | 167,200 | 162,500 | 180,300 |
| 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 |
March 31, 2025 calculation
Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $900,200K ÷ $312,500K
= 2.88
The inventory turnover for Mueller Water Products exhibits notable fluctuations over the analyzed period from June 2020 to March 2025. Initially, the ratio increased from 3.56 in June 2020 to a peak of approximately 4.07 in September 2021, indicating an improvement in inventory management efficiency during this interval. This rise suggests that the company was able to sell and replace its inventory more rapidly, potentially reflecting stronger demand or enhancements in inventory optimization.
Subsequently, the ratio experienced a gradual decline, reaching approximately 2.71 by December 2022. This downward trend persisted into 2023 and early 2024, with ratios stabilizing around 2.83 in June 2024 and slightly rising to 2.88 in March 2025. The decline in inventory turnover ratio over this period implies a lengthening of the average time inventory remains on hand, which could indicate increased inventory levels, slower sales, or a strategic change in inventory management.
Overall, the movement from higher to lower inventory turnover ratios suggests that Mueller Water Products experienced a period of more efficient inventory utilization followed by a phase of slower inventory turnover. This shift could impact liquidity and working capital management, and warrants further analysis to determine whether underlying causes are operational, market-driven, or strategic in nature.
Peer comparison
Mar 31, 2025
Mar 31, 2025