Middleby Corp (MIDD)
Payables 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 |
| Payables | US$ in thousands | 227,080 | 224,375 | 232,740 | 282,032 | 271,374 | 261,169 | 323,155 | 305,344 | 304,740 | 254,287 | 223,425 | 213,431 | 182,773 | 152,262 | 124,995 | 191,724 | 173,693 | 181,171 | 193,124 | 194,911 |
| Payables turnover | 14.26 | 14.20 | 13.80 | 11.36 | 12.82 | 12.90 | 9.99 | 10.01 | 9.21 | 10.67 | 11.49 | 10.91 | 12.36 | 14.91 | 18.61 | 13.10 | 14.53 | 13.85 | 13.01 | 12.53 |
December 31, 2023 calculation
Payables turnover = Cost of revenue (ttm) ÷ Payables
= $3,237,824K ÷ $227,080K
= 14.26
Middleby Corp's payables turnover ratio has fluctuated over the past few quarters, indicating changes in how efficiently the company is managing its accounts payable. The payables turnover ratio measures how many times a company pays off its accounts payable balance during a period.
Looking at the data provided:
- The payables turnover ratio was relatively high in the most recent quarter ending Dec 31, 2023, at 14.26, suggesting the company is paying off its accounts payable obligations approximately 14.26 times during the year.
- The ratio has shown some variability over the quarters, with peaks and troughs. For example, there was a notable increase in the ratio in the quarter ending Jun 30, 2020, at 18.61, indicating a higher rate of payment during that period.
- On the other hand, the ratio dipped in the quarters ending Jun 30, 2022, and Mar 31, 2022, to around 9.99 and 10.01, respectively, suggesting a slower rate of payment during those periods.
Overall, a higher payables turnover ratio generally indicates that a company is managing its accounts payable effectively by paying its suppliers promptly. In contrast, a lower ratio may signify that the company is taking longer to settle its payables. Middleby Corp's management may need to closely monitor this ratio to ensure effective working capital management and healthy supplier relationships.
Peer comparison
Dec 31, 2023