MGP Ingredients Inc (MGPI)
Working capital 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 current assets | US$ in thousands | 546,136 | 514,297 | 454,162 | 367,098 | 222,283 |
| Total current liabilities | US$ in thousands | 92,450 | 114,106 | 105,375 | 88,800 | 53,329 |
| Working capital turnover | 1.55 | 2.09 | 2.24 | 2.25 | 2.34 |
December 31, 2024 calculation
Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $703,625K ÷ ($546,136K – $92,450K)
= 1.55
The working capital turnover ratio for MGP Ingredients Inc has shown a slight decline over the years, decreasing from 2.34 in December 31, 2020, to 1.55 in December 31, 2024. This ratio indicates how efficiently the company is utilizing its working capital to generate sales. While a higher ratio is usually preferred as it suggests better efficiency in utilizing working capital, the declining trend in MGP Ingredients Inc's working capital turnover may indicate a decrease in efficiency in this aspect over the years. It is essential for the company to closely monitor its working capital management to ensure optimal utilization and drive better operational performance in the future.