MGP Ingredients Inc (MGPI)
Cash conversion cycle
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 319.20 | 308.21 | 270.82 | 250.52 | 238.06 | 235.87 | 235.11 | 209.80 | 199.88 | 195.10 | 202.17 | 199.36 | 209.86 | 228.16 | 247.10 | 167.32 | 173.46 | 174.65 | 184.82 | 179.92 |
| Days of sales outstanding (DSO) | days | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Number of days of payables | days | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Cash conversion cycle | days | 319.20 | 308.21 | 270.82 | 250.52 | 238.06 | 235.87 | 235.11 | 209.80 | 199.88 | 195.10 | 202.17 | 199.36 | 209.86 | 228.16 | 247.10 | 167.32 | 173.46 | 174.65 | 184.82 | 179.92 |
December 31, 2024 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 319.20 + — – —
= 319.20
The cash conversion cycle of MGP Ingredients Inc has exhibited fluctuations over the analyzed period. Starting at around 180 days in early 2020, the cycle increased before decreasing to around 167 days by March 2021. However, it then significantly spiked to 247 days by June 2021, indicating a potential strain on the company's cash flow management. Subsequently, the cycle decreased gradually but remained above 200 days until December 2022. From March 2023 to December 2024, the cycle showed a steady increase, reaching its peak at 319 days by December 2024.
Overall, the trend suggests that MGP Ingredients Inc experienced challenges in efficiently converting its investments in raw materials and inventory into cash during certain periods, which could potentially impact its liquidity and working capital management. Further analysis would be required to understand the specific factors driving these fluctuations in the cash conversion cycle and evaluate their implications for the company's financial performance and operational efficiency.