MGP Ingredients Inc (MGPI)
Working capital turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 829,876 | 776,907 | 622,687 | 393,353 | 361,687 |
| Total current assets | US$ in thousands | 514,297 | 454,162 | 367,098 | 222,283 | 184,206 |
| Total current liabilities | US$ in thousands | 114,106 | 105,375 | 88,800 | 53,329 | 39,295 |
| Working capital turnover | 2.07 | 2.23 | 2.24 | 2.33 | 2.50 |
December 31, 2023 calculation
Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $829,876K ÷ ($514,297K – $114,106K)
= 2.07
MGP Ingredients, Inc.'s working capital turnover has shown a decreasing trend over the past five years, declining from 2.50 in 2019 to 2.09 in 2023. This ratio indicates how efficiently the company is utilizing its working capital to generate revenue. A lower working capital turnover may suggest inefficiency in managing the company's current assets and liabilities to support its operations.
The decreasing trend may indicate that the company's management of working capital has become less efficient over the years, potentially leading to a decrease in sales relative to the level of working capital employed. It is advisable for MGP Ingredients, Inc. to closely monitor its working capital management practices and seek opportunities to improve efficiency to enhance overall operational performance and profitability.