Middleby Corp (MIDD)
Working capital 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (ttm) | US$ in thousands | 4,045,311 | 4,087,831 | 4,100,051 | 4,073,671 | 4,060,947 | 3,867,263 | 3,691,937 | 3,487,110 | 3,250,492 | 3,110,772 | 2,927,752 | 2,590,956 | 2,510,357 | 2,571,587 | 2,661,076 | 2,950,103 | 2,959,446 | 2,928,492 | 2,917,809 | 2,824,933 |
| Total current assets | US$ in thousands | 1,965,860 | 1,960,860 | 2,036,200 | 2,060,520 | 2,006,000 | 1,950,540 | 1,935,260 | 1,823,820 | 1,707,080 | 1,507,740 | 1,525,920 | 1,393,110 | 1,270,490 | 1,241,180 | 1,651,270 | 1,507,660 | 1,209,200 | 1,200,450 | 1,184,920 | 1,111,140 |
| Total current liabilities | US$ in thousands | 851,094 | 864,247 | 878,405 | 990,309 | 988,284 | 937,778 | 976,414 | 918,401 | 914,888 | 822,836 | 731,837 | 714,437 | 700,258 | 596,994 | 504,553 | 607,232 | 593,137 | 585,244 | 565,297 | 561,557 |
| 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 |
December 31, 2023 calculation
Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $4,045,311K ÷ ($1,965,860K – $851,094K)
= 3.63
Middleby Corp's working capital turnover ratio has fluctuated over the past twenty quarters. The working capital turnover ratio measures how efficiently a company is utilizing its working capital to generate sales revenue.
From Dec 2019 to Dec 2023, the ratio ranged between 2.32 to 5.14, indicating variability in the efficiency of working capital management. A higher ratio generally suggests that the company is effectively using its working capital to support sales.
The ratio peaked in Dec 2019 at 5.14, showing that the company was generating significant sales relative to its working capital. However, the ratio dipped to a low of 2.32 in Jun 2020, indicating a decline in the efficiency of working capital utilization during that period.
Overall, the trend in the working capital turnover ratio for Middleby Corp has shown fluctuations, suggesting potential changes in the company's operational efficiency and effectiveness in managing its working capital to support sales over the analyzed period. Further analysis would be needed to understand the specific factors driving these fluctuations and their implications for the company's financial performance.
Peer comparison
Dec 31, 2023