Middleby Corp (MIDD)
Receivables turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 4,045,300 | 4,060,950 | 3,250,490 | 2,510,360 | 2,958,550 |
| Receivables | US$ in thousands | 644,576 | 631,134 | 577,142 | 363,361 | 447,612 |
| Receivables turnover | 6.28 | 6.43 | 5.63 | 6.91 | 6.61 |
December 31, 2023 calculation
Receivables turnover = Revenue ÷ Receivables
= $4,045,300K ÷ $644,576K
= 6.28
The receivables turnover ratio for Middleby Corp has fluctuated over the past five years. In 2023, the company's receivables turnover ratio was 6.28, indicating that the company collected its accounts receivable approximately 6.28 times during the year. This was a slight decrease compared to 6.43 in 2022 and 6.61 in 2019, suggesting a potential decrease in the efficiency of collecting receivables from customers.
The fluctuation in the receivables turnover ratio could be a result of changes in the company's credit policies, sales terms, or the overall economic environment. A higher receivables turnover ratio is generally preferred as it indicates that the company is collecting payments from customers more quickly, which improves cash flow and reduces the risk of bad debts.
It is important for Middleby Corp to closely monitor its receivables turnover ratio and implement strategies to ensure efficient collections to maintain a healthy cash flow and overall financial stability.
Peer comparison
Dec 31, 2023