Middleby Corp (MIDD)
Cash conversion cycle
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 125.97 | 134.75 | 135.88 | 138.31 | 135.50 | 146.88 | 155.27 | 159.74 | 152.10 | 155.43 | 154.36 | 150.83 | 148.67 | 126.57 | 118.64 | 124.32 | 120.87 | 122.89 | 130.79 | 122.83 |
| Days of sales outstanding (DSO) | days | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Number of days of payables | days | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Cash conversion cycle | days | 125.97 | 134.75 | 135.88 | 138.31 | 135.50 | 146.88 | 155.27 | 159.74 | 152.10 | 155.43 | 154.36 | 150.83 | 148.67 | 126.57 | 118.64 | 124.32 | 120.87 | 122.89 | 130.79 | 122.83 |
December 31, 2024 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 125.97 + — – —
= 125.97
The cash conversion cycle of Middleby Corp has shown some fluctuation over the analyzed period, ranging from a low of 118.64 days to a high of 159.74 days. The trend indicates that the cash conversion cycle initially increased, peaked around the first quarter of 2023, and has since been declining gradually. This implies that the company's efficiency in turning its resources into cash has varied over time, potentially impacting its working capital management and overall liquidity position. A lower cash conversion cycle generally signifies a more efficient use of cash and resources, while a higher cycle may indicate delays in receiving payments from customers or managing inventory levels. Middleby Corp may need to closely monitor and potentially improve its operational processes to optimize its cash conversion cycle and enhance its financial performance in the long run.
Peer comparison
Dec 31, 2024