Middleby Corp (MIDD)
Profitability ratios
Return on sales
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Gross profit margin | 37.92% | 35.62% | 36.76% | 35.14% | 37.30% |
| Operating profit margin | 15.69% | 15.75% | 19.38% | 12.92% | 17.37% |
| Pretax margin | 12.84% | 13.90% | 19.06% | 10.68% | 15.64% |
| Net profit margin | 9.91% | 10.75% | 15.03% | 8.26% | 11.91% |
Middleby Corp's profitability ratios show fluctuations over the past five years. The gross profit margin has generally been stable, with a slight improvement in 2023 at 37.92%, indicating the company's ability to control production costs and generate profit from its sales.
The operating profit margin, which measures efficiency in managing operating expenses, has also been consistent, hovering around 15-20% over the years. This suggests that Middleby Corp has been effective in controlling its operating costs while generating profits from its core business activities.
The pretax margin reflects the company's ability to generate profits before accounting for taxes. The trend shows fluctuations, but overall, it has been at healthy levels, with a slight decrease in 2023 to 12.84%. This indicates that the company is managing its pre-tax expenses effectively to maintain profitability.
The net profit margin, which represents the percentage of revenue that translates into net income, has also seen variations over the years but remains relatively stable. The 9.91% net profit margin in 2023 indicates that Middleby Corp is able to convert a significant portion of its revenue into profits after all expenses are accounted for.
Overall, Middleby Corp's profitability ratios suggest that the company has maintained a reasonable level of profitability over the years, with effective cost management and revenue generation strategies in place. Continued monitoring and analysis of these ratios will be important to assess the company's long-term financial health and performance.
Return on investment
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 9.19% | 9.30% | 9.87% | 6.24% | 10.28% |
| Return on assets (ROA) | 5.80% | 6.35% | 7.65% | 3.98% | 7.04% |
| Return on total capital | 11.28% | 11.68% | 12.91% | 8.81% | 13.47% |
| Return on equity (ROE) | 12.34% | 15.60% | 19.58% | 10.49% | 18.09% |
Middleby Corp's profitability ratios have exhibited some fluctuations over the past five years.
1. Operating return on assets (Operating ROA) has shown a consistent trend, with 2021 having the highest ratio at 9.87% and 2020 the lowest at 6.24%. The ratio for 2023 is 9.19%, indicating that the company generates 9.19 cents of operating income for every dollar of assets.
2. Return on assets (ROA) has also fluctuated, with 2019 and 2021 showing the highest ratios at 7.04% and 7.65% respectively. The 2023 ratio stands at 5.80%, suggesting that the company generated 5.80 cents of net income for every dollar of assets.
3. Return on total capital has experienced variability, with the highest ratio of 13.47% recorded in 2019 and the lowest ratio of 8.81% in 2020. The 2023 ratio of 11.28% implies that the company generated 11.28 cents of net income for every dollar of total capital employed.
4. Return on equity (ROE) has shown fluctuations as well, with 2019 and 2021 having the highest ratios at 18.09% and 19.58% respectively. The 2023 ratio of 12.34% indicates that the company generated 12.34 cents of net income for every dollar of shareholder equity.
In conclusion, Middleby Corp's profitability ratios have exhibited some variability over the years, with some ratios showing improvement while others have experienced declines. It is important for investors to consider these trends when evaluating the company's financial performance.