Middleby Corp (MIDD)
Solvency ratios
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-capital ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-equity ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Financial leverage ratio | 2.00 | 2.00 | 2.05 | 2.09 | 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 |
Middleby Corp has maintained a strong solvency position with consistently low debt-to-assets, debt-to-capital, and debt-to-equity ratios of 0.00 across all periods from March 2020 to December 2024. This indicates that the company has virtually no debt relative to its total assets, capital, and equity, highlighting a prudent financial risk management strategy.
The financial leverage ratio, which measures the extent of a company's financial leverage, has shown a declining trend over the years, decreasing from 2.79 in March 2020 to 2.00 by December 2024. This reduction suggests that Middleby Corp has been reducing its reliance on debt financing in favor of equity, which can enhance financial stability and flexibility while reducing the risk of financial distress.
Overall, Middleby Corp's solvency ratios reflect a conservative approach to managing its financial structure, indicating a strong financial position and lower vulnerability to economic downturns or adverse financial events.
Coverage ratios
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Interest coverage | 7.40 | 5.82 | 5.12 | 4.83 | 4.55 | 5.49 | 5.95 | 6.41 | 6.77 | 7.01 | 7.29 | 7.82 | 8.36 | 6.54 | 6.07 | 3.88 | 4.02 | 5.07 | 4.83 | 5.98 |
Middleby Corp's interest coverage ratio has exhibited some fluctuations over the past few years. The interest coverage ratio measures the company's ability to cover its interest expenses with its operating income.
Looking at the data provided, Middleby Corp's interest coverage ratio has ranged from a low of 3.88 in March 31, 2021, to a high of 8.36 in December 31, 2021. The ratio improved significantly in the latter part of 2021 and remained relatively stable above 6 in the subsequent quarters through December 31, 2022.
However, from March 31, 2023, the interest coverage ratio started to decrease steadily, dropping to 4.55 by December 31, 2023. Despite a slight recovery in the following quarters, the ratio remained below the levels seen in 2021.
The interest coverage ratio is a crucial metric for lenders and investors as it indicates the company's ability to meet its interest obligations. A higher ratio typically signifies a lower risk of default on interest payments.
Overall, Middleby Corp's interest coverage has shown some volatility but generally remained within acceptable levels, providing some assurance that the company has been able to meet its interest expenses from its operating income.