Middleby Corp (MIDD)
Fixed asset turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 4,045,300 | 4,060,950 | 3,250,490 | 2,510,360 | 2,958,550 |
| Property, plant and equipment | US$ in thousands | 510,898 | 443,528 | 380,980 | 344,482 | 352,145 |
| Fixed asset turnover | 7.92 | 9.16 | 8.53 | 7.29 | 8.40 |
December 31, 2023 calculation
Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $4,045,300K ÷ $510,898K
= 7.92
Middleby Corp's fixed asset turnover has shown fluctuations over the past five years. The ratio indicates how efficiently the company is generating revenue from its investment in fixed assets.
In 2023, the fixed asset turnover ratio decreased to 7.92 from 9.16 in 2022. This decline suggests that the company generated $7.92 in sales for every dollar invested in fixed assets during 2023, compared to $9.16 in 2022. This may indicate a decrease in the company's efficiency in utilizing its fixed assets to generate revenue.
Despite the decrease in 2023, Middleby Corp's fixed asset turnover ratio remained relatively high compared to 2020 and 2019. This implies that the company has historically been efficient in generating revenue from its fixed asset base.
Overall, while the decrease in the fixed asset turnover ratio in 2023 is a point of concern, Middleby Corp's historical performance indicates a consistent ability to effectively utilize its fixed assets to drive sales. Further analysis and comparison with industry benchmarks may provide additional insights into the company's operational efficiency.
Peer comparison
Dec 31, 2023