Middleby Corp (MIDD)
Quick ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 689,533 | 247,496 | 162,001 | 180,362 | 268,103 |
| Short-term investments | US$ in thousands | — | 2,897 | 6,805 | — | — |
| Receivables | US$ in thousands | — | — | — | — | — |
| Total current liabilities | US$ in thousands | 829,322 | 851,094 | 988,284 | 914,888 | 700,258 |
| Quick ratio | 0.83 | 0.29 | 0.17 | 0.20 | 0.38 |
December 31, 2024 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($689,533K
+ $—K
+ $—K)
÷ $829,322K
= 0.83
The quick ratio, also known as the acid-test ratio, indicates a company's ability to meet its short-term obligations with its most liquid assets. Looking at the trend for Middleby Corp over the past five years, we observe a declining pattern in the quick ratio from 0.38 in December 2020 to 0.83 in December 2024.
A quick ratio of less than 1 suggests that the company may have difficulty meeting its current liabilities using only its most liquid assets. Middleby Corp's quick ratio of 0.20 in December 2021 and 0.17 in December 2022 indicates a potential liquidity challenge during those years.
However, the quick ratio improved significantly in December 2024, reaching 0.83, which may signify a healthier liquidity position for the company at that time. It's essential to monitor how Middleby Corp manages its liquidity going forward to ensure it can meet its short-term obligations promptly.
Peer comparison
Dec 31, 2024