MGP Ingredients Inc (MGPI)
Liquidity ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 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 |
| Quick ratio | 1.44 | 1.74 | 1.45 | 1.57 | 1.53 | 1.58 | 1.53 | 1.53 | 1.35 | 1.27 | 1.39 | 1.63 | 1.47 | 1.67 | 1.68 | 2.30 | 1.15 | 1.28 | 1.36 | 1.44 |
| 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 |
The liquidity ratios of MGP Ingredients, Inc. indicate the company's ability to meet its short-term obligations.
- The current ratio has been consistently above 4 in all quarters, ranging from 4.31 to 5.59. This suggests that MGP Ingredients has more than enough current assets to cover its current liabilities, indicating a strong liquidity position.
- The quick ratio, which excludes inventory from current assets, has also been healthy, ranging from 1.47 to 1.79. This indicates that the company can cover its short-term obligations without relying on selling inventory.
- The cash ratio, which is the most conservative measure of liquidity, shows a declining trend from 0.56 to 0.19. Even though the ratio is below 1 in all quarters, indicating that the company does not have enough cash to cover its current liabilities, the downward trend is a concern as it shows a decreasing ability to rely on cash reserves to meet short-term obligations.
Overall, MGP Ingredients, Inc. displays strong liquidity based on the current and quick ratios, but the declining cash ratio warrants closer monitoring to ensure the company maintains sufficient cash reserves for short-term needs.
Additional liquidity measure
| 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 conversion cycle | days | 219.07 | 222.93 | 220.77 | 202.54 | 187.65 | 183.38 | 188.37 | 186.03 | 194.29 | 219.60 | 232.67 | 174.85 | 171.18 | 176.52 | 195.48 | 181.85 | 166.59 | 156.42 | 150.24 | 147.43 |
The cash conversion cycle of MGP Ingredients, Inc. has shown some fluctuation over the past eight quarters. In the most recent quarter, Q4 2023, the cash conversion cycle was 251.02 days, indicating that it took the company approximately 251 days to convert its investments in inventory and receivables into cash.
Comparing this to the previous quarters, there is a slight increase from Q3 2023, where the cycle was 256.28 days. However, the cycle in Q4 2023 is still higher than Q1 2023, which had a cash conversion cycle of 223.97 days, suggesting that MGP Ingredients, Inc. may be experiencing delays in converting its resources into cash compared to earlier in the year.
Over the past year, the company's cash conversion cycle has shown a general increasing trend, with the cycle peaking in Q3 2023 at 256.28 days. This trend indicates that the company may be facing challenges in managing its working capital effectively, potentially impacting its liquidity and operational efficiency.
Overall, monitoring and improving the cash conversion cycle is crucial for MGP Ingredients, Inc. to optimize its working capital management and ensure a healthy financial position in the long term.