Middleby Corp (MIDD)
Interest coverage
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 634,868 | 708,342 | 695,606 | 678,062 | 639,604 | 590,116 | 661,893 | 631,383 | 629,992 | 584,599 | 437,789 | 340,190 | 324,431 | 383,234 | 417,907 | 518,396 | 514,043 | 502,000 | 488,332 | 460,035 |
| Interest expense (ttm) | US$ in thousands | 128,606 | 118,485 | 111,472 | 100,785 | 88,977 | 76,239 | 65,364 | 58,744 | 57,157 | 66,217 | 71,443 | 78,971 | 78,617 | 75,156 | 77,584 | 77,802 | 82,609 | 83,706 | 82,003 | 70,439 |
| Interest coverage | 4.94 | 5.98 | 6.24 | 6.73 | 7.19 | 7.74 | 10.13 | 10.75 | 11.02 | 8.83 | 6.13 | 4.31 | 4.13 | 5.10 | 5.39 | 6.66 | 6.22 | 6.00 | 5.96 | 6.53 |
December 31, 2023 calculation
Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $634,868K ÷ $128,606K
= 4.94
Middleby Corp's interest coverage ratio has shown fluctuations over the past few quarters. The interest coverage ratio measures the company's ability to meet its interest obligations with its operating income.
From Dec 31, 2019, to Dec 31, 2023, Middleby Corp's interest coverage ratio ranged from 4.31 to 11.02. The ratio peaked at 11.02 on Jun 30, 2022, indicating strong earnings relative to its interest expenses at that time. However, the ratio declined in the subsequent quarters before rebounding to 6.73 on Mar 31, 2023.
Overall, Middleby Corp's interest coverage ratio has generally been above 5, which suggests that the company has been able to comfortably cover its interest payments with its operating profits. However, analysts may want to monitor the trend in the interest coverage ratio going forward to assess the company's ability to meet its debt obligations.
Peer comparison
Dec 31, 2023