MGP Ingredients Inc (MGPI)
Cash ratio
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 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 | 3,309 | 4,397 | 2,162 | 0 |
| Short-term investments | US$ in thousands | — | — | — | — | — | — | — | — | — | 5 | — | — | — | — | — | — | — | — | — | — |
| 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 |
| Cash ratio | 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 | 0.08 | 0.13 | 0.07 | 0.00 |
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 been fluctuating over the past eight quarters. It decreased from 0.48 in Q4 2022 to 0.19 in Q4 2023, indicating a significant decline in the company's ability to cover its short-term liabilities with cash alone. The cash ratio in Q4 2023 is below the industry average, which suggests potential liquidity challenges for the company.
The company's cash ratio improved slightly in Q3 2023 and Q1 2023, reaching 0.36 and 0.37, respectively. However, these improvements were not sustained as the ratio dropped to 0.23 in Q2 2023 and further down to 0.19 in Q4 2023.
Overall, the decreasing trend in MGP Ingredients, Inc.'s cash ratio over the past year indicates a potential liquidity risk. The company may need to closely monitor its cash management practices and explore strategies to improve its ability to meet short-term obligations with readily available cash resources.