MGP Ingredients Inc (MGPI)
Fixed asset turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 829,876 | 776,907 | 622,687 | 393,353 | 361,687 |
| Property, plant and equipment | US$ in thousands | 262,303 | 235,632 | 207,286 | 131,992 | 128,419 |
| Fixed asset turnover | 3.16 | 3.30 | 3.00 | 2.98 | 2.82 |
December 31, 2023 calculation
Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $829,876K ÷ $262,303K
= 3.16
The fixed asset turnover ratio of MGP Ingredients, Inc. has demonstrated a generally increasing trend over the past five years. The ratio was 2.82 in 2019, increased to 3.00 in 2020, and continued to rise to 3.02 in 2021. There was a slight dip to 3.32 in 2022 before settling at 3.19 in 2023. This indicates that the company generated $3.19 in revenue for every dollar invested in fixed assets in 2023. Overall, the increasing trend suggests improved efficiency in utilizing fixed assets to generate sales, reflecting positively on the company's operational performance and asset management capabilities.