Middleby Corp (MIDD)
Return on equity (ROE)
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 428,433 | 400,882 | 436,569 | 488,492 | 207,294 |
| Total stockholders’ equity | US$ in thousands | 3,638,430 | 3,249,890 | 2,797,750 | 2,494,280 | 1,976,650 |
| ROE | 11.78% | 12.34% | 15.60% | 19.58% | 10.49% |
December 31, 2024 calculation
ROE = Net income ÷ Total stockholders’ equity
= $428,433K ÷ $3,638,430K
= 11.78%
Middleby Corp's return on equity (ROE) has shown a positive trend over the five-year period from 2020 to 2024.
In 2020, the ROE was 10.49%, indicating that for every dollar of equity invested, the company generated a return of 10.49%. This suggests that the company was moderately efficient in utilizing shareholder equity to generate profits.
The ROE increased significantly to 19.58% by the end of 2021, indicating improved profitability and efficiency in utilizing equity. This substantial increase suggests that the company may have implemented more effective strategies to generate higher returns for its shareholders.
By the end of 2022, the ROE slightly decreased to 15.60%, still maintaining a relatively strong performance in generating returns on equity. This level indicates that the company continued to efficiently utilize shareholder equity to generate profits, although not as high as the previous year.
In 2023, the ROE declined further to 12.34%, indicating a decrease in profitability and efficiency compared to the previous year. This could be a result of various factors such as increased expenses or lower revenues impacting the company's ability to generate returns on equity.
By the end of 2024, the ROE decreased slightly to 11.78%, suggesting a continued decline in the company's efficiency in generating returns on equity. Although still positive, the decreasing trend in ROE may indicate challenges in maintaining or improving profitability levels.
Overall, Middleby Corp's ROE performance over the five-year period has been mixed, with intermittent fluctuations. It is important for the company to continue monitoring and addressing factors impacting profitability to sustain and improve its efficiency in generating returns on equity for shareholders.
Peer comparison
Dec 31, 2024