Middleby Corp (MIDD)
Financial leverage ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 6,906,690 | 6,874,870 | 6,383,600 | 5,202,470 | 5,002,140 |
| Total stockholders’ equity | US$ in thousands | 3,249,890 | 2,797,750 | 2,494,280 | 1,976,650 | 1,946,810 |
| Financial leverage ratio | 2.13 | 2.46 | 2.56 | 2.63 | 2.57 |
December 31, 2023 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $6,906,690K ÷ $3,249,890K
= 2.13
Middleby Corp's financial leverage ratio has exhibited a decreasing trend over the past five years, declining from 2.57 in 2019 to 2.13 in 2023. This indicates that the company has been gradually reducing its reliance on debt to finance its operations and investments. Lower financial leverage ratios suggest that Middleby Corp is using more equity in its capital structure, which can be seen as a positive sign of financial stability and lower financial risk. However, it is essential to consider the industry norms and the company's specific circumstances when interpreting this ratio. Overall, the decreasing trend in Middleby Corp's financial leverage ratio suggests a shift towards a stronger and more balanced capital structure.
Peer comparison
Dec 31, 2023