Name: Working Capital Turnover

Definition: Working capital turnover shows how efficiently the company uses its short-term resources — like cash, inventory, and receivables — to generate sales. Higher turnover means the company squeezes more sales from its working capital. Lower turnover may indicate inefficient inventory, slow collections, or too much short-term capital tied up unnecessarily.

Interpretation:
• In '2021', MIDD's working capital turnover was 4.10, showing how efficiently working capital is deployed. Industry average for Industrial Machinery/Components in '2021' stood at 2.04.
• In '2022', MIDD's working capital turnover was 4.46, showing how efficiently working capital is deployed. The increase since '2021' reflects strengthening financial performance. Industry average for Industrial Machinery/Components in '2022' stood at 2.09. Industry average increased by 0.05 compared to previous year.
• In '2023', MIDD's working capital turnover was 3.79, showing how efficiently working capital is deployed. The decline from '2022' may indicate some operational or financial challenges. Industry average for Industrial Machinery/Components in '2023' stood at 2.20. Industry average increased by 0.11 compared to previous year.
• In '2024', MIDD's working capital turnover was 2.96, showing how efficiently working capital is deployed. The decline from '2023' may indicate some operational or financial challenges. Industry average for Industrial Machinery/Components in '2024' stood at 2.35. Industry average increased by 0.15 compared to previous year.
Overall, MIDD's working capital turnover has been volatile but showed a downward trend over the past 4 years.

Formula: Working Capital Turnover = Net Sales / Working Capital

Good Range: Ranges 5-20 depending on business.