Middleby Corp (MIDD)

Activity ratios

Short-term

Turnover ratios

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
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
Receivables turnover 6.28 6.46 6.37 — 6.43 — — — 5.63 — — — — — — — — — — —
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
Working capital turnover 3.63 3.73 3.54 3.81 3.99 3.82 3.85 3.85 4.10 4.54 3.69 3.82 4.40 3.99 2.32 3.28 4.80 4.76 4.71 5.14

1. Inventory Turnover: Middleby Corp's inventory turnover ratio has been fluctuating over the past two years, indicating changes in how quickly the company is able to sell its inventory. The decreasing trend from the end of 2022 to the end of 2023 suggests that the company may be holding onto inventory for longer periods or facing challenges in selling its products.

2. Receivables Turnover: The company's receivables turnover ratio has been relatively stable and indicates that Middleby Corp is collecting its accounts receivable efficiently. The lack of data for the March 31, 2023 period makes it hard to assess the trend accurately, but based on available data, the company's ability to convert receivables into cash seems satisfactory.

3. Payables Turnover: Middleby Corp's payables turnover ratio has also shown fluctuations, with a general downward trend over the periods. This indicates that the company may be taking longer to pay its suppliers, which could potentially strain supplier relationships if not managed effectively. However, it is important to consider industry norms and payment terms in interpreting this ratio.

4. Working Capital Turnover: The working capital turnover ratio for Middleby Corp has been variable, with peaks and troughs observed in the data. This ratio measures how effectively the company is using its working capital to generate revenue. The fluctuation in the ratio may suggest changes in the company's operating efficiency and its ability to generate sales in relation to its working capital.

Overall, a deeper analysis taking into consideration industry benchmarks and economic conditions would provide more insights into Middleby Corp's operational efficiency and financial performance.

Average number of days

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
Days of inventory on hand (DOH) days 105.50 116.31 123.04 127.24 113.05 115.15 114.03 110.44 108.88 92.25 86.54 90.05 87.25 89.62 95.50 90.67 84.69 89.34 88.90 86.69
Days of sales outstanding (DSO) days 58.16 56.54 57.28 — 56.73 — — — 64.81 — — — — — — — — — — —
Number of days of payables days 25.60 25.71 26.45 32.14 28.47 28.30 36.52 36.47 39.62 34.19 31.77 33.47 29.52 24.48 19.62 27.87 25.12 26.36 28.06 29.12

Middleby Corp's activity ratios provide insights into its management of inventory, receivables, and payables.

Days of Inventory on Hand (DOH) increased from 86.69 days in Q1 2019 to 105.50 days in Q4 2023, indicating an upward trend in the number of days it takes to sell inventory. This suggests a slower turnover of inventory, which could tie up more capital and potentially lead to increased carrying costs.

Days of Sales Outstanding (DSO) decreased from 64.81 days in Q4 2021 to 58.16 days in Q4 2023. A decreasing trend in DSO indicates that the company is collecting receivables more efficiently, improving its cash flow and liquidity position.

Number of Days of Payables increased from 26.36 days in Q1 2019 to 39.62 days in Q4 2023, showing a trend of taking longer to pay suppliers. This can indicate a potential strain on supplier relationships and may imply stretched liquidity management.

Overall, Middleby Corp's activity ratios suggest a need for the company to focus on improving inventory turnover efficiency and managing payables effectively to optimize working capital and enhance overall financial performance.

Long-term

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
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
Total asset turnover 0.59 0.59 0.59 0.59 0.59 0.58 0.56 0.54 0.51 0.54 0.54 0.49 0.48 0.51 0.49 0.56 0.59 0.59 0.60 0.60

Middleby Corp's fixed asset turnover ratio has shown a fluctuating trend over the past two years, ranging from 7.29 to 9.16. This indicates that the company generated revenue between approximately 7.3 to 9.2 times from its fixed assets during the period. The higher values suggest that Middleby effectively utilized its fixed assets to generate sales.

On the other hand, the total asset turnover ratio has remained relatively stable around 0.59 over the same period. This indicates that the company generated revenue equivalent to nearly 59% of its total assets each period. A consistent total asset turnover ratio suggests a stable efficiency in generating sales from the total assets employed in the business.

In comparison, the fixed asset turnover ratio is significantly higher than the total asset turnover ratio, indicating that Middleby Corp is more efficient in generating revenue from its fixed assets rather than its total assets. This could imply that the company has a significant portion of its total assets tied up in fixed assets that are generating a relatively high level of revenue compared to the rest of the assets.