Middleby Corp (MIDD)
Cash ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 689,533 | 247,496 | 162,001 | 180,362 | 268,103 |
| Short-term investments | US$ in thousands | — | 2,897 | 6,805 | — | — |
| Total current liabilities | US$ in thousands | 829,322 | 851,094 | 988,284 | 914,888 | 700,258 |
| Cash ratio | 0.83 | 0.29 | 0.17 | 0.20 | 0.38 |
December 31, 2024 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($689,533K
+ $—K)
÷ $829,322K
= 0.83
The cash ratio for Middleby Corp has exhibited fluctuations over the past five years. As of December 31, 2020, the cash ratio was 0.38, indicating that the company had $0.38 of cash and cash equivalents for every dollar of current liabilities.
However, this ratio decreased to 0.20 by December 31, 2021, suggesting a reduction in the company's liquidity position. The trend continued as the cash ratio dropped further to 0.17 by December 31, 2022, reflecting a potential strain on the company's ability to cover its short-term obligations with available cash.
On a positive note, the cash ratio saw an improvement to 0.29 by December 31, 2023, signaling an enhancement in the company's liquidity position. This improvement became more pronounced by December 31, 2024, as the cash ratio surged to 0.83, indicating a significant increase in the company's ability to meet its short-term liabilities with cash and cash equivalents.
Overall, the fluctuation in Middleby Corp's cash ratio indicates varying levels of liquidity over the years, with a notable improvement in the most recent period, enhancing the company's ability to cover its short-term obligations with available cash holdings.
Peer comparison
Dec 31, 2024