MGP Ingredients Inc (MGPI)
Cash ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 25,273 | 18,388 | 47,889 | 21,568 | 21,662 |
| Short-term investments | US$ in thousands | — | — | — | — | — |
| Total current liabilities | US$ in thousands | 92,450 | 114,106 | 105,375 | 88,800 | 53,329 |
| Cash ratio | 0.27 | 0.16 | 0.45 | 0.24 | 0.41 |
December 31, 2024 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($25,273K
+ $—K)
÷ $92,450K
= 0.27
The cash ratio of MGP Ingredients Inc has fluctuated over the years, ranging from 0.16 to 0.45. The ratio indicates the company's ability to cover its short-term liabilities with its cash and cash equivalents. A higher cash ratio suggests a stronger liquidity position, while a lower ratio may indicate potential liquidity challenges.
In 2020, the cash ratio was 0.41, indicating that the company had $0.41 in cash and cash equivalents for every $1 of current liabilities. However, by the end of 2021, the ratio decreased to 0.24, suggesting a relative decrease in the company's liquidity position.
By the end of 2022, the cash ratio improved to 0.45, indicating a better ability to meet short-term obligations with available cash. This positive trend was followed by a decline in 2023, where the cash ratio dropped to 0.16, signaling potential liquidity concerns for MGP Ingredients Inc during that period.
In the most recent year, 2024, the cash ratio improved again to 0.27, suggesting a partial recovery in the company's liquidity position. Overall, the fluctuation in the cash ratio over the years highlights the importance of closely monitoring the company's cash management and liquidity position to ensure its financial health and ability to meet short-term obligations.