Middleby Corp (MIDD)
Payables turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 3,476,740 | 3,479,550 | 2,807,360 | 2,259,810 | 2,524,240 |
| Payables | US$ in thousands | 227,080 | 271,374 | 304,740 | 182,773 | 173,693 |
| Payables turnover | 15.31 | 12.82 | 9.21 | 12.36 | 14.53 |
December 31, 2023 calculation
Payables turnover = Cost of revenue ÷ Payables
= $3,476,740K ÷ $227,080K
= 15.31
Over the past five years, Middleby Corp's payables turnover ratio has shown fluctuations. The payables turnover ratio measures how efficiently a company is managing its accounts payable by indicating the number of times the company pays off its suppliers in a given period.
In 2019, the payables turnover ratio was 14.53, indicating that Middleby Corp paid off its suppliers approximately 14.53 times during that year. The ratio increased to 12.36 in 2020, suggesting a slight decrease in the frequency of paying suppliers. However, in 2021, the ratio dropped to 9.21, indicating that Middleby Corp took longer to pay off its suppliers compared to the previous years.
Expanding upon that trend, the payables turnover ratio rebounded in 2022 to 12.82, showing some improvement in the company's efficiency in managing its accounts payable. The latest available data for 2023 reflects a significant increase in the payables turnover ratio to 15.31, indicating that Middleby Corp has further improved its ability to settle its payables promptly.
Overall, the fluctuations in the payables turnover ratio over the past five years may suggest changes in Middleby Corp's relationship with its suppliers, its payment policies, or its operational efficiency. It is important for stakeholders to monitor this ratio over time to assess the company's liquidity management and supplier relationships.
Peer comparison
Dec 31, 2023