MGP Ingredients Inc (MGPI)

Payables 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
Payables	US$ in thousands	73,594	54,403	84,921	66,755	66,432	64,858	60,572	52,763	53,712	37,004	37,434	28,545	30,273	29,055	21,429	28,456	29,511	24,200	20,711	19,398
Payables turnover		8.74	11.71	7.29	9.25	9.11	9.04	9.41	10.69	9.52	12.57	10.96	12.04	11.27	11.43	15.02	11.26	10.69	13.16	15.57	16.49

December 31, 2023 calculation

Payables turnover = Cost of revenue (ttm) ÷ Payables
= $643,115K ÷ $73,594K
= 8.74

The payables turnover ratio for MGP Ingredients, Inc. over the past eight quarters has shown some fluctuations. In Q3 2023, the company's payables turnover was at 9.74, indicating that on average, MGP Ingredients paid off its suppliers approximately 9.74 times during that quarter. This was the highest payables turnover ratio observed in the provided data.

Conversely, in Q2 2023, the payables turnover ratio dropped to 6.29, suggesting a decrease in the frequency of paying off suppliers compared to the previous quarter. This could imply that MGP Ingredients took longer to settle its payables during that period.

Overall, the payables turnover ratios for MGP Ingredients, Inc. have generally been in a range between 6.29 and 9.74 over the past eight quarters. This indicates variations in the company's efficiency in managing its accounts payable and the speed at which it pays off its suppliers. Further analysis of the trend and comparison with industry benchmarks would provide more insights into the company's liquidity management and supplier relationships.