MGP Ingredients Inc (MGPI)

Receivables 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
Revenue (ttm)	US$ in thousands	829,876	812,630	802,152	788,133	782,358	758,210	733,675	713,632	626,720	560,788	486,732	404,055	394,172	385,352	373,217	371,159	361,563	374,318	378,595	376,354
Receivables	US$ in thousands	145,476	128,885	149,887	128,611	113,594	108,659	105,393	102,062	98,076	93,534	79,110	67,147	56,966	54,392	54,164	52,443	41,918	40,554	41,604	43,885
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

December 31, 2023 calculation

Receivables turnover = Revenue (ttm) ÷ Receivables
= $829,876K ÷ $145,476K
= 5.70

The receivables turnover ratio for MGP Ingredients, Inc. has shown some fluctuation over the past eight quarters. The ratio indicates how efficiently the company is able to collect outstanding receivables during a specific period. A higher ratio generally indicates more effective management of accounts receivable.

In Q4 2023, the receivables turnover was 5.75, which decreased from the previous quarter (Q3 2023) when it was 6.31. This suggests that the company took slightly longer to collect its outstanding receivables in Q4 compared to Q3. However, when compared to the same quarter in the previous year (Q4 2022), the turnover ratio has decreased, indicating a potential slowdown in receivables collections efficiency.

Overall, the trend in MGP Ingredients, Inc.'s receivables turnover ratio shows some variability but has generally remained within a relatively stable range over the past eight quarters. It would be advisable for the company to continue monitoring and managing its accounts receivable effectively to ensure timely collections and maintain healthy cash flows.