Middleby Corp (MIDD)
Profitability ratios
Return on sales
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Gross profit margin | 37.94% | 38.00% | 35.87% | 36.76% | 35.10% |
| Operating profit margin | 16.93% | 15.73% | 15.86% | 13.79% | 12.91% |
| Pretax margin | 14.90% | 12.87% | 14.00% | 19.06% | 10.67% |
| Net profit margin | 11.06% | 9.93% | 10.83% | 15.03% | 8.25% |
Middleby Corp has shown a consistent improvement in its profitability ratios over the years. The gross profit margin has increased from 35.10% in December 2020 to 37.94% in December 2024, indicating the company's ability to efficiently manage its production costs and generate profits from sales.
Similarly, the operating profit margin has also shown steady growth, going from 12.91% in December 2020 to 16.93% in December 2024. This demonstrates Middleby's effectiveness in controlling its operating expenses while increasing operating income.
The pretax margin, which reflects the company's profitability before taxes, witnessed a significant spike in December 2021 at 19.06%. Although it dropped slightly in the following years, it remained healthy at around 14-15%. This indicates Middleby's ability to generate profits before accounting for taxes, highlighting its operational efficiency.
Lastly, the net profit margin, representing the portion of revenue that translates into net income, has also improved over the years. Starting at 8.25% in December 2020, it increased to 11.06% by December 2024. This signifies Middleby's ability to effectively manage its costs and generate sustainable profits for its shareholders.
Overall, Middleby Corp's profitability ratios show a positive trend, reflecting the company's ability to efficiently manage its operations and generate increasing profits over the years.
Return on investment
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 9.01% | 9.19% | 9.30% | 7.02% | 6.24% |
| Return on assets (ROA) | 5.88% | 5.80% | 6.35% | 7.65% | 3.98% |
| Return on total capital | 18.40% | 20.68% | 23.23% | 26.39% | 17.66% |
| Return on equity (ROE) | 11.78% | 12.34% | 15.60% | 19.58% | 10.49% |
Middleby Corp's profitability ratios have shown mixed trends over the past five years.
1. Operating ROA has generally increased from 6.24% in 2020 to 9.01% in 2024. This indicates the company's ability to generate operating income relative to its total assets has been improving steadily.
2. ROA saw fluctuations, with a significant increase from 3.98% in 2020 to 7.65% in 2021, but then declining to 5.88% in 2024. This suggests that the company's overall profit generated from its assets has been inconsistent over the years.
3. Return on total capital has shown a similar trend to ROA, starting at 17.66% in 2020, peaking at 26.39% in 2021, and then gradually declining to 18.40% in 2024. This ratio indicates how effectively the company is generating profit relative to the total capital invested.
4. ROE exhibited growth from 10.49% in 2020 to 19.58% in 2021. However, it then experienced a downward trend, declining to 11.78% in 2024. ROE reflects the return generated for shareholders based on the equity invested in the company.
Overall, while Middleby Corp has shown improvements in its operational efficiency and capital utilization, some fluctuations in overall profitability and returns to equity holders suggest a need for continued assessment and strategic management of its resources.