MGP Ingredients Inc (MGPI)
Current ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Total current assets | US$ in thousands | 514,297 | 454,162 | 367,098 | 222,283 | 184,206 |
| Total current liabilities | US$ in thousands | 114,106 | 105,375 | 88,800 | 53,329 | 39,295 |
| Current ratio | 4.51 | 4.31 | 4.13 | 4.17 | 4.69 |
December 31, 2023 calculation
Current ratio = Total current assets ÷ Total current liabilities
= $514,297K ÷ $114,106K
= 4.51
The current ratio of MGP Ingredients, Inc. has shown a generally stable trend over the past five years, ranging from 4.13 to 4.69. The current ratio measures the company's ability to meet its short-term obligations with its current assets, with a higher ratio indicating stronger short-term liquidity.
MGP Ingredients' current ratio has consistently remained above 4, demonstrating a strong ability to cover its current liabilities with its current assets. The relatively high current ratio indicates that the company has ample current assets to cover its short-term debts, which may imply a lower risk of financial distress or default.
Overall, MGP Ingredients, Inc. has maintained a healthy level of liquidity over the years, as reflected by its consistently high current ratios.