Middleby Corp (MIDD)
Financial leverage ratio
| Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 6,906,690 | 6,922,610 | 6,984,760 | 6,956,140 | 6,874,870 | 6,671,860 | 6,579,370 | 6,474,160 | 6,383,600 | 5,772,850 | 5,422,780 | 5,289,910 | 5,202,470 | 5,020,180 | 5,414,700 | 5,277,980 | 5,002,140 | 4,928,530 | 4,886,670 | 4,688,120 |
| Total stockholders’ equity | US$ in thousands | 3,249,890 | 3,095,220 | 2,999,530 | 2,862,200 | 2,797,750 | 2,498,540 | 2,417,970 | 2,427,970 | 2,494,280 | 2,298,970 | 2,125,880 | 1,995,210 | 1,976,650 | 2,031,320 | 1,939,520 | 1,894,710 | 1,946,810 | 1,856,030 | 1,798,250 | 1,726,060 |
| Financial leverage ratio | 2.13 | 2.24 | 2.33 | 2.43 | 2.46 | 2.67 | 2.72 | 2.67 | 2.56 | 2.51 | 2.55 | 2.65 | 2.63 | 2.47 | 2.79 | 2.79 | 2.57 | 2.66 | 2.72 | 2.72 |
December 31, 2023 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $6,906,690K ÷ $3,249,890K
= 2.13
The financial leverage ratio for Middleby Corp has shown fluctuations over the past few quarters, ranging from 2.13 to 2.79. The ratio measures the proportion of the company's total debt to its equity, indicating the extent to which the company is using debt to finance its operations.
A ratio above 1 indicates that the company has more debt than equity, implying higher financial risk. Middleby Corp's leverage ratios have consistently been above 2, indicating a relatively high level of debt in its capital structure compared to equity. This suggests that the company relies heavily on debt to support its business activities.
The increasing trend in the financial leverage ratio from 2.13 to 2.79 over the period indicates a growing reliance on debt financing. While leveraging can amplify returns in a favorable economic environment, it also increases the company's vulnerability to financial distress during economic downturns or rising interest rates.
Investors and creditors closely monitor the financial leverage ratio to assess the company's ability to meet its debt obligations and manage financial risk. Middleby Corp's trend of increasing leverage warrants careful monitoring to ensure sustainable financial health and operational resilience.
Peer comparison
Dec 31, 2023