MGP Ingredients Inc (MGPI)
Current 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Total current assets | US$ in thousands | 514,297 | 503,916 | 520,849 | 475,439 | 454,162 | 440,644 | 422,524 | 395,265 | 367,098 | 351,896 | 353,641 | 229,548 | 222,283 | 221,084 | 217,038 | 242,263 | 184,206 | 175,640 | 169,011 | 159,839 |
| 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 |
| Current ratio | 4.51 | 5.59 | 4.39 | 4.65 | 4.31 | 4.37 | 4.53 | 4.68 | 4.13 | 4.07 | 4.24 | 4.17 | 4.17 | 4.98 | 5.54 | 5.86 | 4.69 | 5.00 | 5.26 | 5.25 |
December 31, 2023 calculation
Current ratio = Total current assets ÷ Total current liabilities
= $514,297K ÷ $114,106K
= 4.51
Based on the data provided, the current ratio of MGP Ingredients, Inc. has fluctuated over the past eight quarters. The current ratio measures the company's ability to cover its short-term obligations with its current assets.
In Q3 2023, the current ratio peaked at 5.59, indicating a strong ability to meet short-term liabilities using current assets. However, there was a notable decline in Q2 2023 to 4.39, raising some concerns about liquidity.
Overall, the company's current ratio has generally been above 4, indicating a healthy liquidity position throughout the quarters analyzed. This suggests that MGP Ingredients, Inc. has a sufficient level of current assets to cover its current liabilities, providing a cushion for any unexpected financial challenges.
It is important for stakeholders to continue monitoring the current ratio to ensure the company maintains a strong liquidity position and is able to meet its short-term obligations effectively.