MGP Ingredients Inc (MGPI)
Operating return on assets (Operating ROA)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Operating income | US$ in thousands | 148,613 | 148,965 | 126,363 | 54,241 | 47,242 |
| Total assets | US$ in thousands | 1,392,350 | 1,158,210 | 1,041,470 | 366,575 | 322,597 |
| Operating ROA | 10.67% | 12.86% | 12.13% | 14.80% | 14.64% |
December 31, 2023 calculation
Operating ROA = Operating income ÷ Total assets
= $148,613K ÷ $1,392,350K
= 10.67%
The operating return on assets (ROA) of MGP Ingredients, Inc. has shown fluctuations over the past five years. In 2023, MGP's operating ROA was 12.55%, slightly lower than the previous year's 12.67%. This indicates that the company generated $0.1255 of operating income for every dollar of assets in 2023.
Comparing this to the data from previous years, the operating ROA was significantly higher in 2020 at 14.80% and 2019 at 14.64%, highlighting better efficiency in generating operating income relative to assets during those periods. In contrast, there was a relative decline in operating ROA in 2021 at 10.41%, which rebounded in 2022 but then dipped slightly in 2023.
Overall, the operating ROA trend suggests that MGP Ingredients, Inc. has been reasonably efficient in utilizing its assets to generate operating income over the past five years, although there have been fluctuations in performance. Further analysis and comparison with industry benchmarks could provide additional insights into the company's operational efficiency and performance.