Middleby Corp (MIDD)
Cash ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 247,496 | 162,001 | 180,362 | 268,103 | 94,500 |
| Short-term investments | US$ in thousands | — | 6,805 | — | — | — |
| Total current liabilities | US$ in thousands | 851,094 | 988,284 | 914,888 | 700,258 | 593,137 |
| Cash ratio | 0.29 | 0.17 | 0.20 | 0.38 | 0.16 |
December 31, 2023 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($247,496K
+ $—K)
÷ $851,094K
= 0.29
Middleby Corp's cash ratio has fluctuated over the past five years. The cash ratio measures a company's ability to cover its short-term liabilities with its available cash and cash equivalents. A higher cash ratio indicates a stronger ability to meet short-term obligations without relying on external financing.
In 2023, the cash ratio increased significantly to 0.29 from 0.17 in 2022, reflecting an improvement in the company's liquidity position. This suggests that Middleby Corp had a higher proportion of cash reserves relative to its current liabilities at the end of 2023.
The cash ratio was relatively stable in 2021 and 2020 at 0.20 and 0.38, respectively. A cash ratio of 0.38 in 2020 indicates that Middleby Corp had more than enough cash to cover its short-term obligations. This was a positive sign of strong liquidity and financial health.
In 2019, the cash ratio was lower at 0.16, indicating that Middleby Corp had a lower level of cash relative to its current liabilities. This could suggest a tighter liquidity position compared to the other years analyzed.
Overall, while the cash ratio for Middleby Corp has varied over the years, the trend indicates fluctuations in the company's liquidity position. Investors and stakeholders should continue to monitor the cash ratio to assess the company's ability to meet its short-term obligations.
Peer comparison
Dec 31, 2023