Middleby Corp (MIDD)
Cash conversion cycle
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 127.73 | 136.50 | 152.10 | 148.67 | 120.87 |
| Days of sales outstanding (DSO) | days | — | — | — | — | — |
| Number of days of payables | days | — | — | — | — | — |
| Cash conversion cycle | days | 127.73 | 136.50 | 152.10 | 148.67 | 120.87 |
December 31, 2024 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 127.73 + — – —
= 127.73
The cash conversion cycle of Middleby Corp has shown some fluctuation over the past five years. As of December 31, 2020, the company had a cash conversion cycle of 120.87 days, indicating it took approximately 121 days to convert its investments in inventory and accounts receivable into cash.
Subsequently, the cash conversion cycle increased to 148.67 days by the end of 2021, reflecting a longer period for the company to convert its assets into cash. However, in 2022, the cycle extended further to 152.10 days, indicating the company faced challenges in efficiently managing its working capital.
By the end of 2023, Middleby Corp was able to reduce its cash conversion cycle to 136.50 days, showing some improvement in its working capital management. The most recent data from December 31, 2024, reveals a further decrease in the cash conversion cycle to 127.73 days, indicating the company may have implemented strategies to streamline its cash conversion process.
Overall, fluctuations in the cash conversion cycle of Middleby Corp suggest varying efficiency levels in managing its operating cycle and working capital requirements over the specified period. The company may need to continue evaluating and improving its processes to enhance cash flow management and overall financial performance.
Peer comparison
Dec 31, 2024