MGP Ingredients Inc (MGPI)
Current ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Total current assets | US$ in thousands | 546,136 | 514,297 | 454,162 | 367,098 | 222,283 |
| Total current liabilities | US$ in thousands | 92,450 | 114,106 | 105,375 | 88,800 | 53,329 |
| Current ratio | 5.91 | 4.51 | 4.31 | 4.13 | 4.17 |
December 31, 2024 calculation
Current ratio = Total current assets ÷ Total current liabilities
= $546,136K ÷ $92,450K
= 5.91
The current ratio of MGP Ingredients Inc has shown a generally positive trend over the past five years, increasing from 4.17 in December 2020 to 5.91 in December 2024. This indicates that the company's current assets are increasing relative to its current liabilities, reflecting a strong ability to meet its short-term obligations with its current assets. A high current ratio above 2 suggests that the company is well-positioned to cover its immediate financial obligations. The consistent improvement in the current ratio over the years suggests effective management of working capital and liquidity, enhancing the company's financial strength and stability.