Middleby Corp (MIDD)
Interest coverage
| 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 |
| Interest expense | US$ in thousands | 152,569 | 88,977 | 57,157 | 78,617 | 82,609 |
| Interest coverage | 4.16 | 7.19 | 11.02 | 4.13 | 6.22 |
December 31, 2023 calculation
Interest coverage = EBIT ÷ Interest expense
= $634,868K ÷ $152,569K
= 4.16
Middleby Corp's interest coverage ratio has fluctuated over the past five years, as seen in the table. The interest coverage ratio measures a company's ability to cover its interest payments with its earnings before interest and taxes (EBIT). A higher ratio indicates that the company is more capable of meeting its interest obligations.
In 2021, Middleby Corp had a relatively strong interest coverage ratio of 11.02, implying that the company's EBIT was more than sufficient to cover its interest expenses. However, this ratio decreased in 2023 to 4.16, indicating a decreased ability to cover interest payments from operating income.
Overall, the trend in Middleby Corp's interest coverage ratio has been somewhat volatile, with fluctuations seen in recent years. It is important for investors and analysts to monitor this ratio closely, as it reflects the company's ability to manage its debt obligations and the associated financial risks.
Peer comparison
Dec 31, 2023