MGP Ingredients Inc (MGPI)

Days of inventory on hand (DOH)

		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
Inventory turnover		1.85	1.86	1.80	2.00	2.09	2.13	2.09	2.17	2.08	1.94	1.77	2.53	2.42	2.33	2.19	2.24	2.30	2.52	2.73	2.87
DOH	days	196.86	196.21	202.61	182.44	174.71	171.44	174.71	167.98	175.50	187.75	206.64	144.51	150.81	156.94	166.81	162.70	158.41	144.60	133.57	127.00

December 31, 2023 calculation

DOH = 365 ÷ Inventory turnover
= 365 ÷ 1.85
= 196.86

Analysis of MGP Ingredients, Inc.'s Days of Inventory on Hand (DOH) over the past eight quarters reveals a slight upward trend. In Q4 2023, the company had an estimated DOH of 238.06 days, showing a gradual increase compared to the previous quarters. This suggests that MGP Ingredients, Inc. is holding inventory for a longer period before selling it, which may tie up capital and lead to potential inefficiencies. The trend indicates a need for the company to closely monitor and manage its inventory levels to optimize cash flow and operational efficiency. Further investigation into the reasons behind the increasing DOH is recommended to identify areas for improvement within the company's inventory management practices.