Middleby Corp (MIDD)
Current ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Total current assets | US$ in thousands | 1,965,860 | 2,006,000 | 1,707,080 | 1,270,490 | 1,209,200 |
| Total current liabilities | US$ in thousands | 851,094 | 988,284 | 914,888 | 700,258 | 593,137 |
| Current ratio | 2.31 | 2.03 | 1.87 | 1.81 | 2.04 |
December 31, 2023 calculation
Current ratio = Total current assets ÷ Total current liabilities
= $1,965,860K ÷ $851,094K
= 2.31
Middleby Corp's current ratio has shown a consistent upward trend over the past five years. The current ratio, which measures the company's ability to cover its short-term liabilities with its current assets, increased from 2.04 in 2019 to 2.31 in 2023. This indicates that Middleby Corp has improved its liquidity position and is better positioned to meet its short-term obligations.
The current ratio exceeding 1 suggests the company has more current assets than current liabilities, providing a buffer against potential liquidity issues. A higher current ratio implies a stronger financial position and better short-term debt repayment capacity. Middleby Corp's current ratio has been above 1.8 for the last three years, indicating a relatively stable liquidity position.
Overall, Middleby Corp's improving current ratio suggests a healthier financial position and a reduced risk of liquidity problems in the short term. However, it is essential to consider other factors and ratios in conjunction with the current ratio to get a more comprehensive view of the company's financial health.
Peer comparison
Dec 31, 2023