Middleby Corp (MIDD)
Fixed asset turnover
| 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 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (ttm) | US$ in thousands | 4,045,311 | 4,087,831 | 4,100,051 | 4,073,671 | 4,060,947 | 3,867,263 | 3,691,937 | 3,487,110 | 3,250,492 | 3,110,772 | 2,927,752 | 2,590,956 | 2,510,357 | 2,571,587 | 2,661,076 | 2,950,103 | 2,959,446 | 2,928,492 | 2,917,809 | 2,824,933 |
| Property, plant and equipment | US$ in thousands | 510,898 | 498,871 | 483,064 | 461,728 | 443,528 | 423,947 | 417,688 | 382,574 | 380,980 | 370,266 | 336,924 | 336,257 | 344,482 | 343,860 | 343,369 | 345,824 | 352,145 | 342,971 | 336,929 | 318,212 |
| Fixed asset turnover | 7.92 | 8.19 | 8.49 | 8.82 | 9.16 | 9.12 | 8.84 | 9.11 | 8.53 | 8.40 | 8.69 | 7.71 | 7.29 | 7.48 | 7.75 | 8.53 | 8.40 | 8.54 | 8.66 | 8.88 |
December 31, 2023 calculation
Fixed asset turnover = Revenue (ttm) ÷ Property, plant and equipment
= $4,045,311K ÷ $510,898K
= 7.92
Middleby Corp's fixed asset turnover has shown a general increasing trend over the past several quarters, indicating that the company is generating more revenue from its fixed assets. The ratio has ranged from a low of 7.29 in March 2021 to a high of 9.16 in December 2022, with the most recent value being 8.19 as of September 30, 2023.
A fixed asset turnover ratio of 8.19 means that for every dollar invested in fixed assets, Middleby Corp is generating $8.19 in revenue. This suggests that the company is effectively utilizing its fixed assets to generate sales.
Overall, the trend of increasing fixed asset turnover is a positive sign as it indicates improved efficiency in asset utilization and potentially higher profitability for Middleby Corp. It is important for the company to continue monitoring and maintaining this ratio to ensure optimal use of its fixed assets.
Peer comparison
Dec 31, 2023