MGP Ingredients Inc (MGPI)

Activity ratios

Short-term

Turnover ratios

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
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
Receivables turnover 5.70 6.31 5.35 6.13 6.89 6.98 6.96 6.99 6.39 6.00 6.15 6.02 6.92 7.08 6.89 7.08 8.63 9.23 9.10 8.58
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
Working capital turnover 2.07 1.96 1.99 2.11 2.24 2.23 2.23 2.30 2.25 2.11 1.80 2.31 2.33 2.18 2.10 1.85 2.50 2.66 2.77 2.91

MGP Ingredients, Inc.'s activity ratios provide insights into how effectively the company is managing its resources.

1. Inventory turnover: The inventory turnover ratio measures how many times a company sells and replaces its inventory during a period. MGP's inventory turnover has been declining slightly over the quarters, indicating that the company is taking longer to sell its inventory. This trend suggests potential issues with inventory management or changes in demand for MGP's products.

2. Receivables turnover: This ratio reflects how efficiently the company collects cash from its credit sales. MGP's receivables turnover has fluctuated throughout the quarters, showing some variability in the collection of receivables. The recent decrease in Q4 2023 compared to the previous quarter may imply delays in collecting payments from customers, which could impact the company's cash flow.

3. Payables turnover: The payables turnover ratio measures how quickly a company pays off its suppliers. MGP's payables turnover has also been fluctuating, but generally has been stable over the quarters. A higher payables turnover ratio indicates that MGP is managing its payables effectively, potentially taking advantage of trade credit terms.

4. Working capital turnover: This ratio indicates how efficiently the company is using its working capital to generate sales. MGP's working capital turnover has remained relatively stable with minor fluctuations. A higher working capital turnover ratio signifies that MGP is effectively utilizing its working capital to generate revenue.

Overall, MGP Ingredients, Inc. should closely monitor its inventory turnover and receivables turnover to address any inefficiencies in inventory management and receivables collection processes. The company's stable payables turnover and working capital turnover ratios indicate efficient management of liabilities and working capital to support its sales activities.

Average number of days

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
Days of inventory on hand (DOH) days 196.86 196.21 202.61 182.44 174.71 171.44 174.71 167.98 175.50 187.75 206.64 144.51 150.81 156.94 166.81 162.70 158.41 144.60 133.57 127.00
Days of sales outstanding (DSO) days 63.98 57.89 68.20 59.56 53.00 52.31 52.43 52.20 57.12 60.88 59.32 60.66 52.75 51.52 52.97 51.57 42.32 39.54 40.11 42.56
Number of days of payables days 41.77 31.18 50.04 39.47 40.06 40.36 38.77 34.15 38.33 29.03 33.30 30.31 32.38 31.93 24.30 32.43 34.14 27.73 23.44 22.13

Days of inventory on hand (DOH) for MGP Ingredients, Inc. have been increasing over the past four quarters, from 199.88 days in Q4 2022 to 238.06 days in Q4 2023. This suggests that the company is holding onto its inventory for a longer period, which may indicate inefficiencies in managing its inventory levels or potential issues with sales and demand forecasting.

Days of sales outstanding (DSO) have shown some variability over the quarters, ranging from 53.00 days in Q4 2022 to 68.20 days in Q2 2023. A decreasing trend in DSO would indicate that the company is collecting its accounts receivable more quickly, which is generally favorable as it reflects a more efficient credit and collection process.

The number of days of payables for MGP Ingredients, Inc. has also shown fluctuations, from a low of 37.48 days in Q3 2023 to a high of 58.07 days in Q2 2023. A longer period of payables suggests that the company is taking more time to settle its outstanding obligations, which can be advantageous from a cash flow perspective but may adversely impact relationships with suppliers if not managed effectively.

Overall, the activity ratios indicate that MGP Ingredients, Inc. has room for improvement in managing its inventory levels and payables period to enhance operational efficiency and cash flow management.

Long-term

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
Fixed asset turnover 3.16 3.34 3.20 3.27 3.32 3.44 3.46 3.44 3.02 2.84 2.57 2.91 2.99 2.97 2.90 2.88 2.82 3.06 3.16 3.14
Total asset turnover 0.60 0.59 0.57 0.67 0.68 0.67 0.66 0.66 0.60 0.55 0.48 1.06 1.08 1.07 1.05 0.97 1.12 1.22 1.27 1.30

The fixed asset turnover ratio for MGP Ingredients, Inc. has been relatively stable over the past eight quarters, ranging from 3.19 to 3.46. This indicates that the company generates between $3.19 and $3.46 in sales for every dollar invested in fixed assets. The consistent high values of this ratio suggest that the company efficiently utilizes its fixed assets to generate revenue.

On the other hand, the total asset turnover ratio has fluctuated more significantly, ranging from 0.57 to 0.68 over the same period. This ratio measures how efficiently the company uses all its assets to generate sales. The declining trend in total asset turnover from Q1 2023 to Q2 2023 should be noted, indicating a decrease in sales generated per dollar of total assets. However, the ratio rebounded in Q4 2023.

Overall, MGP Ingredients, Inc. has shown strong efficiency in utilizing its fixed assets to generate sales, as evidenced by the consistent high fixed asset turnover ratios. While the total asset turnover ratio has fluctuated, the company's ability to effectively manage its assets to generate revenue is evident.