Middleby Corp (MIDD)
Total asset 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 |
| Total assets | US$ in thousands | 6,906,690 | 6,874,870 | 6,383,600 | 5,202,470 | 5,002,140 |
| Total asset turnover | 0.59 | 0.59 | 0.51 | 0.48 | 0.59 |
December 31, 2023 calculation
Total asset turnover = Revenue ÷ Total assets
= $4,045,300K ÷ $6,906,690K
= 0.59
Middleby Corp's total asset turnover has shown some fluctuations over the past five years. The ratio indicates how efficiently the company is utilizing its assets to generate revenue. A higher total asset turnover ratio is generally preferred as it suggests that the company is generating more revenue per dollar of assets.
In this case, Middleby Corp's total asset turnover ratio was fairly stable at around 0.59 in 2023, 2022, and 2019, indicating consistent efficiency in asset utilization during those years. However, there was a slight drop to 0.51 in 2021 and 0.48 in 2020, which may suggest a decrease in the company's ability to generate revenue relative to its asset base during those periods.
It is important for Middleby Corp to analyze the factors contributing to the fluctuations in the total asset turnover ratio to identify areas for improvement in asset efficiency. This analysis can help the company make strategic decisions to optimize its asset utilization and enhance overall financial performance.
Peer comparison
Dec 31, 2023