Middleby Corp (MIDD)
Working capital turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 3,875,160 | 4,036,600 | 4,032,850 | 3,250,790 | 2,513,260 |
| Total current assets | US$ in thousands | 2,330,040 | 1,965,860 | 2,006,000 | 1,707,080 | 1,270,490 |
| Total current liabilities | US$ in thousands | 829,322 | 851,094 | 988,284 | 914,888 | 700,258 |
| Working capital turnover | 2.58 | 3.62 | 3.96 | 4.10 | 4.41 |
December 31, 2024 calculation
Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $3,875,160K ÷ ($2,330,040K – $829,322K)
= 2.58
Based on the provided data, Middleby Corp's working capital turnover has exhibited a declining trend over the years. The company's working capital turnover ratio decreased from 4.41 in December 31, 2020, to 2.58 by December 31, 2024. This indicates that the company's efficiency in utilizing its working capital to generate sales has decreased over the years.
A working capital turnover ratio below 1 suggests that the company may not be efficiently using its working capital to support its operations and generate revenue. Middleby Corp's decreasing working capital turnover ratio may raise concerns regarding its management of working capital and its ability to efficiently convert working capital into sales.
Investors and analysts may closely monitor Middleby Corp's working capital turnover ratio and assess the company's operational efficiency and liquidity management strategies to ensure sustainable business performance in the long run.
Peer comparison
Dec 31, 2024