MGP Ingredients Inc (MGPI)
Cash ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 18,388 | 47,889 | 21,568 | 21,662 | 3,309 |
| Short-term investments | US$ in thousands | — | — | — | — | — |
| Total current liabilities | US$ in thousands | 114,106 | 105,375 | 88,800 | 53,329 | 39,295 |
| Cash ratio | 0.16 | 0.45 | 0.24 | 0.41 | 0.08 |
December 31, 2023 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($18,388K
+ $—K)
÷ $114,106K
= 0.16
The cash ratio of MGP Ingredients, Inc. has fluctuated over the past five years. In 2023, the cash ratio stood at 0.19, indicating that the company had $0.19 in cash for every $1 of current liabilities. This represents a decrease from the previous year, where the ratio was 0.48, suggesting a lower level of immediate liquidity compared to 2022.
Comparing 2023 to 2021 and 2020, there was also a decline in the cash ratio. In 2021, the cash ratio was 0.26, while in 2020 it was 0.46. This downward trend may indicate reduced ability to cover short-term obligations with cash on hand during those years.
However, the cash ratio in 2023 was higher compared to 2019 when it was 0.14. This improvement suggests that MGP Ingredients, Inc. had a higher level of cash reserves relative to its current liabilities in 2023 compared to 2019.
Overall, the fluctuation in the cash ratio of MGP Ingredients, Inc. over the past five years may reflect variations in the company's liquidity position and its ability to meet short-term obligations using cash reserves.