Middleby Corp (MIDD)

Liquidity ratios

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
Current ratio 2.81 2.81 2.50 2.40 2.31 2.27 2.32 2.08 2.03 2.08 1.98 1.99 1.87 1.83 2.09 1.95 1.81 2.08 3.27 2.48
Quick ratio 0.83 0.74 0.54 0.41 0.29 0.20 0.19 0.17 0.17 0.15 0.17 0.16 0.20 0.31 0.54 0.43 0.38 0.37 1.29 0.63
Cash ratio 0.83 0.74 0.54 0.41 0.29 0.20 0.19 0.17 0.17 0.15 0.17 0.16 0.20 0.31 0.54 0.43 0.38 0.37 1.29 0.63

Middleby Corp's current ratio has been relatively stable over the past few years, ranging between 1.81 to 2.81. This indicates the company's ability to cover its short-term liabilities with its current assets. However, the current ratio shows a decline towards the end of 2024, potentially indicating a weakening liquidity position.

The quick ratio, which excludes inventory from current assets, shows a more volatile trend, with values fluctuating between 0.15 to 0.83. This ratio indicates Middleby Corp's ability to pay off its current liabilities without relying on the sale of inventory. The quick ratio also shows fluctuations similar to the current ratio, reflecting potential challenges in managing short-term obligations efficiently.

The cash ratio, which is the most conservative liquidity measure as it only considers cash and cash equivalents, mirrors the trend of the quick ratio. It ranges between 0.15 to 0.83, similar to the quick ratio, indicating the company's ability to cover its current liabilities using only its cash reserves.

Overall, while Middleby Corp's liquidity ratios have shown some stability and improvement over the years, the fluctuations in the quick and cash ratios towards the end of 2024 may warrant further investigation into the company's liquidity management practices.

Additional liquidity measure

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
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

The cash conversion cycle for Middleby Corp has shown fluctuations over the periods provided. It is a measure of how long it takes for the company to convert its investments in inventory and other resources into cash flows from sales.

From March 31, 2020, to December 31, 2024, the cash conversion cycle ranged from a low of 118.64 days to a high of 159.74 days. Initially, the cycle remained relatively stable around 120-130 days, indicating efficient management of working capital. However, an increase in the cycle to 148.67 days by December 31, 2021, and further to 155.43 days by September 30, 2022, suggests potential delays in the company's ability to convert resources into cash.

There was a notable improvement in efficiency by March 31, 2024, with the cycle decreasing to 138.31 days and further to 125.97 days by December 31, 2024. This reduction could indicate enhanced inventory management or quicker collection of receivables, leading to a shorter cash conversion cycle.

Overall, the cash conversion cycle analysis highlights the importance of monitoring working capital efficiency and cash flow conversion for Middleby Corp to ensure optimal financial performance and liquidity management.