MGP Ingredients Inc (MGPI)
Number of days of payables
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Payables turnover | 8.73 | 9.12 | 9.35 | 11.27 | 10.69 | |
| Number of days of payables | days | 41.80 | 40.03 | 39.04 | 32.38 | 34.14 |
December 31, 2023 calculation
Number of days of payables = 365 ÷ Payables turnover
= 365 ÷ 8.73
= 41.80
The number of days of payables for MGP Ingredients, Inc. has exhibited a fluctuating trend over the past five years. In 2023, the number of days of payables increased to 50.51 days, compared to 45.83 days in both 2022 and 2021. This implies that the company took longer to pay off its trade payables in 2023.
Looking further back, in 2020, the number of days of payables was 37.24 days, which was lower than the figures in 2021 and 2022. In 2019, there were 37.63 days of payables, which is relatively consistent with the figures in the subsequent years.
Overall, the trend in the number of days of payables for MGP Ingredients, Inc. suggests some variability in the company's payment practices. An increase in the number of days of payables may indicate a slower turnaround in settling its trade payables, potentially impacting relationships with suppliers and cash flow management.