MGP Ingredients Inc (MGPI)
Cash ratio
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 25,273 | 20,772 | 21,011 | 19,497 | 18,388 | 28,030 | 21,959 | 31,728 | 47,889 | 50,674 | 37,415 | 27,295 | 21,568 | 16,162 | 37,243 | 22,586 | 21,662 | 19,966 | 11,745 | 42,659 |
| Short-term investments | US$ in thousands | — | — | — | — | — | — | — | — | — | — | — | — | — | 5 | — | — | — | — | — | — |
| Total current liabilities | US$ in thousands | 92,450 | 82,338 | 84,791 | 80,258 | 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 |
| Cash ratio | 0.27 | 0.25 | 0.25 | 0.24 | 0.16 | 0.31 | 0.19 | 0.31 | 0.45 | 0.50 | 0.40 | 0.32 | 0.24 | 0.19 | 0.45 | 0.41 | 0.41 | 0.45 | 0.30 | 1.03 |
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 shown fluctuations over the years based on the provided data. The cash ratio measures a company's ability to cover its short-term liabilities with its cash and cash equivalents.
The cash ratio for MGP Ingredients Inc was stable around 0.40 to 0.50 from June 2022 to September 2022, indicating a healthy liquidity position during that period. However, there was a significant decrease in the cash ratio to 0.16 by the end of December 2023, suggesting a potential liquidity issue at that time.
Subsequently, there was a slight recovery in the cash ratio to 0.27 by the end of December 2024. Despite this improvement, the cash ratio remained relatively low compared to previous periods, indicating that MGP Ingredients Inc may have faced challenges in maintaining sufficient cash reserves to cover its short-term obligations.
Overall, the trend in the cash ratio for MGP Ingredients Inc reflects fluctuations in the company's liquidity position over the years, highlighting the importance of monitoring cash levels to ensure financial stability and meet short-term financial commitments.