MGP Ingredients Inc (MGPI)
Quick ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 18,388 | 47,889 | 21,568 | 21,662 | 3,309 |
| Short-term investments | US$ in thousands | — | — | — | — | — |
| Receivables | US$ in thousands | 145,476 | 113,594 | 98,076 | 56,966 | 41,918 |
| Total current liabilities | US$ in thousands | 114,106 | 105,375 | 88,800 | 53,329 | 39,295 |
| Quick ratio | 1.44 | 1.53 | 1.35 | 1.47 | 1.15 |
December 31, 2023 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($18,388K
+ $—K
+ $145,476K)
÷ $114,106K
= 1.44
The quick ratio of MGP Ingredients, Inc. has displayed some fluctuations over the past five years. The ratio indicates the company's ability to meet its short-term obligations with its most liquid assets excluding inventory.
In 2023, the quick ratio stood at 1.47, down from 1.56 in 2022. This suggests that in 2023, the company had $1.47 in liquid assets available to cover each dollar of current liabilities. Despite the slight decrease from the previous year, the company still maintained a healthy level of liquidity.
Looking back, the quick ratio has shown variability, with a peak of 1.56 in 2022 and a low of 1.20 in 2019. This fluctuation could be attributed to changes in the company's cash, marketable securities, and accounts receivable relative to its current liabilities over the years.
Overall, the trend in the quick ratio indicates that MGP Ingredients, Inc. has generally managed to maintain a sufficient level of liquid assets to cover its short-term obligations, with some fluctuations in liquidity levels observed over the years.