Middleby Corp (MIDD)
Return on total capital
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 634,868 | 639,604 | 629,992 | 324,431 | 514,043 |
| Long-term debt | US$ in thousands | 2,380,370 | 2,676,740 | 2,387,000 | 1,706,650 | 1,870,250 |
| Total stockholders’ equity | US$ in thousands | 3,249,890 | 2,797,750 | 2,494,280 | 1,976,650 | 1,946,810 |
| Return on total capital | 11.28% | 11.68% | 12.91% | 8.81% | 13.47% |
December 31, 2023 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $634,868K ÷ ($2,380,370K + $3,249,890K)
= 11.28%
Middleby Corp's return on total capital has shown fluctuation over the past five years. The ratio decreased from 13.47% in 2019 to 8.81% in 2020 before slightly recovering to 12.91% in 2021. In the most recent years, the return on total capital has been relatively stable, with 11.68% in 2022 and 11.28% in 2023.
Overall, the return on total capital indicates how effectively Middleby Corp is generating profits from both its equity and debt capital. A higher return on total capital suggests that the company is utilizing its capital efficiently to generate returns for its investors. However, the fluctuations in the ratio over the years may indicate changes in the company's capital structure, profitability, or capital allocation strategies. Further analysis would be needed to understand the underlying reasons for these fluctuations and evaluate the sustainability of Middleby Corp's performance in generating returns on its total capital.
Peer comparison
Dec 31, 2023