MGP Ingredients Inc (MGPI)
Fixed asset turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 703,625 | 836,523 | 782,358 | 626,720 | 395,521 |
| Property, plant and equipment | US$ in thousands | — | — | 235,632 | 207,286 | 131,992 |
| Fixed asset turnover | — | — | 3.32 | 3.02 | 3.00 |
December 31, 2024 calculation
Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $703,625K ÷ $—K
= —
The fixed asset turnover ratio is a measure of how efficiently a company is utilizing its fixed assets to generate revenue. Looking at the data provided for MGP Ingredients Inc, we observe a consistent improvement in the fixed asset turnover ratio over the years.
In 2020, the fixed asset turnover ratio was 3.00, indicating that the company generated $3.00 in revenue for every dollar invested in fixed assets. This ratio slightly increased to 3.02 in 2021, suggesting a marginal improvement in asset utilization.
The most significant jump in the fixed asset turnover ratio occurred in 2022, reaching 3.32. This indicates that the company became more efficient in utilizing its fixed assets to generate revenue, potentially due to increased sales or better asset management.
Unfortunately, data is unavailable for 2023 and 2024 in determining the trend during those years. It would be necessary to obtain additional information to understand the company's performance in those years.
Overall, the increasing trend in the fixed asset turnover ratio for MGP Ingredients Inc suggests improving efficiency in utilizing its fixed assets to generate revenue, which is generally a positive sign for investors and stakeholders.