MGP Ingredients Inc (MGPI)

The days of sales outstanding (DSO) for MGP Ingredients, Inc. have shown an increasing trend over the past five years. In 2019, the DSO was at its lowest point at 42.18 days, indicating that the company was efficient in collecting its accounts receivable. However, from 2019 to 2023, the DSO gradually increased from 42.18 days to 63.48 days. This suggests that the company is taking longer to collect payments from its customers, which could be indicative of potential issues with credit policies, collection processes, or customer payment delays.

The increasing DSO could also imply potential liquidity concerns as longer collection periods tie up cash flow in accounts receivable, impacting the company's ability to fund operations or invest in growth opportunities. It would be important for MGP Ingredients, Inc. to closely monitor and manage its accounts receivable collection processes to ensure timely receipt of payments and maintain healthy liquidity levels.