MGP Ingredients Inc (MGPI)
Total asset turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 703,625 | 836,523 | 782,358 | 626,720 | 395,521 |
| Total assets | US$ in thousands | 1,405,780 | 1,392,350 | 1,158,210 | 1,041,470 | 366,575 |
| Total asset turnover | 0.50 | 0.60 | 0.68 | 0.60 | 1.08 |
December 31, 2024 calculation
Total asset turnover = Revenue ÷ Total assets
= $703,625K ÷ $1,405,780K
= 0.50
The total asset turnover ratio reflects how efficiently MGP Ingredients Inc generates revenue from its total assets. The trend analysis shows a fluctuation in the total asset turnover over the last five years.
- In December 31, 2020, the total asset turnover was 1.08, indicating that the company generated $1.08 in revenue for every $1 of total assets.
- By December 31, 2021, the total asset turnover decreased to 0.60, suggesting a decline in the company's ability to utilize its assets efficiently to generate revenue.
- There was a slight improvement by December 31, 2022, with the total asset turnover increasing to 0.68, indicating a better utilization of assets to generate revenue.
- However, by December 31, 2023, the total asset turnover dropped back to 0.60, showing a regression in asset efficiency.
- The ratio decreased further to 0.50 by December 31, 2024, indicating a significant decline in the company's ability to generate revenue from its total assets.
Overall, the analysis of the total asset turnover for MGP Ingredients Inc suggests variability in the efficiency of asset utilization for revenue generation over the past five years, with a downward trend in recent years. Further investigation into the underlying factors driving these changes may be necessary to assess the company's operational performance and financial health effectively.