MGP Ingredients Inc (MGPI)

Inventory turnover

		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
Cost of revenue (ttm)	US$ in thousands	643,115	636,949	619,389	617,304	605,266	586,498	570,222	563,882	511,507	465,233	410,301	343,729	341,280	332,120	321,889	320,294	315,503	318,533	322,468	319,961
Inventory	US$ in thousands	346,853	342,401	343,826	308,558	289,722	275,478	272,948	259,517	245,944	239,312	232,292	136,087	141,011	142,798	147,108	142,774	136,931	126,193	118,007	111,330
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

December 31, 2023 calculation

Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $643,115K ÷ $346,853K
= 1.85

The inventory turnover ratio for MGP Ingredients, Inc. has been relatively stable over the past eight quarters, ranging from 1.53 to 1.87. This indicates that the company is efficiently managing its inventory levels and turning over its inventory at a consistent pace.

A lower inventory turnover ratio may suggest that the company is holding onto excess inventory or experiencing slow sales, potentially leading to higher storage costs or obsolete inventory. Conversely, a higher ratio may indicate faster-moving inventory and efficient inventory management practices.

Overall, MGP Ingredients, Inc. has maintained a moderate inventory turnover ratio, which suggests effective inventory management without significant issues related to excess or obsolete inventory.