Middleby Corp (MIDD)
Working capital turnover
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (ttm) | US$ in thousands | 3,875,161 | 3,869,861 | 3,907,703 | 3,956,137 | 4,036,611 | 4,059,731 | 4,071,951 | 4,045,571 | 4,032,847 | 3,867,563 | 3,692,237 | 3,487,410 | 3,250,792 | 3,113,672 | 2,930,652 | 2,593,856 | 2,513,257 | 2,571,587 | 2,661,076 | 2,950,103 |
| Total current assets | US$ in thousands | 2,330,040 | 2,291,610 | 2,143,340 | 2,021,920 | 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 |
| Total current liabilities | US$ in thousands | 829,322 | 814,712 | 856,863 | 840,883 | 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 |
| Working capital turnover | 2.58 | 2.62 | 3.04 | 3.35 | 3.62 | 3.70 | 3.52 | 3.78 | 3.96 | 3.82 | 3.85 | 3.85 | 4.10 | 4.55 | 3.69 | 3.82 | 4.41 | 3.99 | 2.32 | 3.28 |
December 31, 2024 calculation
Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $3,875,161K ÷ ($2,330,040K – $829,322K)
= 2.58
Middleby Corp's working capital turnover indicates how efficiently the company is using its working capital to generate sales revenue.
Based on the provided data, the working capital turnover ratio fluctuated over the period under consideration. The ratio ranged from a low of 2.32 on June 30, 2020, to a high of 4.55 on September 30, 2021. Generally, a higher working capital turnover ratio is favorable as it suggests the company is effectively utilizing its working capital to support its sales activities.
Middleby Corp's working capital turnover ratio peaked at 4.55 on September 30, 2021, indicating that the company was able to generate $4.55 in sales for every $1 of working capital invested during that period. This suggests efficient management of its working capital to support its sales operations.
The ratio showed some volatility over the quarters, dipping to 2.58 on December 31, 2024. A decline in the working capital turnover ratio could indicate inefficiencies in working capital management or difficulties in generating sales revenue using the available working capital.
Overall, it is important for Middleby Corp to monitor and manage its working capital turnover effectively to ensure optimal utilization of resources and support sustainable sales growth in the long term.
Peer comparison
Dec 31, 2024