MGP Ingredients Inc (MGPI)

Working capital 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
Total current assets	US$ in thousands	514,297	503,916	520,849	475,439	454,162	440,644	422,524	395,265	367,098	351,896	353,641	229,548	222,283	221,084	217,038	242,263	184,206	175,640	169,011	159,839
Total current liabilities	US$ in thousands	114,106	90,108	118,651	102,315	105,375	100,791	93,256	84,463	88,800	86,466	83,438	55,003	53,329	44,405	39,195	41,312	39,295	35,125	32,118	30,417
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

December 31, 2023 calculation

Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $829,876K ÷ ($514,297K – $114,106K)
= 2.07

The working capital turnover ratio measures how effectively a company is utilizing its working capital to generate revenue. A higher ratio indicates more efficient use of working capital.

Based on the data provided for MGP Ingredients, Inc., we observe fluctuations in the working capital turnover ratio over the past eight quarters. The ratio has ranged from 1.96 to 2.30 during this period.

In the most recent quarter, Q4 2023, the working capital turnover ratio was 2.09, which indicates that the company generated $2.09 in revenue for every dollar of working capital. This ratio decreased slightly compared to the previous quarter but remained relatively stable.

Overall, MGP Ingredients, Inc. has shown a consistent ability to efficiently utilize its working capital to generate revenue over the past eight quarters, with ratios generally above 2.0. It suggests effective management of the company's current assets and liabilities to support revenue generation.

Further analysis and comparison with industry benchmarks would provide additional insights into the company's working capital efficiency and financial performance.