Middleby Corp (MIDD)
Quick ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 247,496 | 162,001 | 180,362 | 268,103 | 94,500 |
| Short-term investments | US$ in thousands | — | 6,805 | — | — | — |
| Receivables | US$ in thousands | 644,576 | 631,134 | 577,142 | 363,361 | 447,612 |
| Total current liabilities | US$ in thousands | 851,094 | 988,284 | 914,888 | 700,258 | 593,137 |
| Quick ratio | 1.05 | 0.81 | 0.83 | 0.90 | 0.91 |
December 31, 2023 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($247,496K
+ $—K
+ $644,576K)
÷ $851,094K
= 1.05
The quick ratio measures a company's ability to meet its short-term obligations with its most liquid assets. Looking at Middleby Corp's quick ratio over the past five years, we observe some fluctuation.
In 2023, Middleby Corp had a quick ratio of 1.05, which indicates that the company had $1.05 in liquid assets available to cover each $1 of current liabilities. This suggests a strong short-term liquidity position.
Comparing this with the previous year, where the quick ratio was 0.81, we see a significant improvement in liquidity. The quick ratio had been on a downward trend from 2020 to 2022, with values of 0.90, 0.83, and 0.81, respectively.
Overall, the recent increase in the quick ratio to 1.05 in 2023 is a positive sign, reflecting improved liquidity management. However, it's essential to continue monitoring this ratio to ensure the company maintains adequate liquidity to meet its short-term obligations effectively.
Peer comparison
Dec 31, 2023