Middleby Corp (MIDD)
Interest coverage
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 669,549 | 671,947 | 649,889 | 658,192 | 349,120 |
| Interest expense | US$ in thousands | 92,229 | 120,348 | 88,977 | 57,157 | 78,617 |
| Interest coverage | 7.26 | 5.58 | 7.30 | 11.52 | 4.44 |
December 31, 2024 calculation
Interest coverage = EBIT ÷ Interest expense
= $669,549K ÷ $92,229K
= 7.26
Middleby Corp's interest coverage ratio, which measures the company's ability to meet interest obligations on its debt, has shown variability over the past five years. As of December 31, 2020, the interest coverage ratio was 4.44, indicating that Middleby Corp earned 4.44 times the amount needed to cover its interest expenses.
By December 31, 2021, the interest coverage ratio improved significantly to 11.52, suggesting a stronger ability to meet interest payments. The trend continued in 2022, with an interest coverage ratio of 7.30, indicating robust interest coverage. However, by December 31, 2023, the ratio decreased to 5.58, signaling a slight weakening in the company's ability to cover interest costs.
In the most recent year reported, December 31, 2024, the interest coverage ratio increased to 7.26, indicating an improvement in Middleby Corp's ability to cover interest expenses compared to the previous year. Overall, the company's interest coverage ratio has exhibited fluctuation over the period, with some years showing stronger coverage than others. It is essential for investors and stakeholders to monitor this ratio to assess Middleby Corp's financial health and its ability to service its debt obligations.
Peer comparison
Dec 31, 2024