Middleby Corp (MIDD)
Inventory 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cost of revenue (ttm) | US$ in thousands | 3,237,824 | 3,185,479 | 3,211,335 | 3,202,498 | 3,479,549 | 3,368,248 | 3,229,545 | 3,056,340 | 2,807,363 | 2,714,318 | 2,566,808 | 2,327,598 | 2,259,808 | 2,270,492 | 2,325,708 | 2,511,346 | 2,524,242 | 2,508,858 | 2,512,143 | 2,442,664 |
| Inventory | US$ in thousands | 935,867 | 1,015,050 | 1,082,520 | 1,116,360 | 1,077,730 | 1,062,630 | 1,008,920 | 924,763 | 837,418 | 686,043 | 608,570 | 574,277 | 540,198 | 557,512 | 608,484 | 623,822 | 585,699 | 614,102 | 611,859 | 580,174 |
| Inventory turnover | 3.46 | 3.14 | 2.97 | 2.87 | 3.23 | 3.17 | 3.20 | 3.30 | 3.35 | 3.96 | 4.22 | 4.05 | 4.18 | 4.07 | 3.82 | 4.03 | 4.31 | 4.09 | 4.11 | 4.21 |
December 31, 2023 calculation
Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $3,237,824K ÷ $935,867K
= 3.46
Middleby Corp's inventory turnover has displayed fluctuations over the past few quarters. The inventory turnover ratio indicates how efficiently the company manages its inventory to generate sales. A higher turnover typically suggests better inventory management.
In recent quarters, Middleby Corp's inventory turnover has ranged between 2.87 and 4.22. The ratio peaked at 4.22 in the third quarter of 2021, indicating the company was selling its inventory at a faster rate during that period. However, the ratio declined in the following quarters before showing some improvement in the most recent period at 3.46.
The downward trend from the peak suggests potential issues with inventory management, such as overstocking or slow sales. It is essential for the company to closely monitor its inventory levels and adjust purchasing and production strategies accordingly to maintain optimal turnover levels.
Overall, Middleby Corp should strive for a balance in its inventory turnover to ensure efficient operations and maximize profitability. Continued monitoring and adjustment of inventory practices will be crucial in improving and sustaining healthy turnover ratios in the future.
Peer comparison
Dec 31, 2023
Dec 31, 2023