MGP Ingredients Inc (MGPI)
Operating return on assets (Operating ROA)
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Operating income | US$ in thousands | 74,426 | 148,613 | 148,965 | 93,713 | 54,241 |
| Total assets | US$ in thousands | 1,405,780 | 1,392,350 | 1,158,210 | 1,041,470 | 366,575 |
| Operating ROA | 5.29% | 10.67% | 12.86% | 9.00% | 14.80% |
December 31, 2024 calculation
Operating ROA = Operating income ÷ Total assets
= $74,426K ÷ $1,405,780K
= 5.29%
Operating ROA for MGP Ingredients Inc has exhibited some fluctuations over the past five years. The ratio decreased from 14.80% as of December 31, 2020, to 9.00% as of December 31, 2021, representing a significant decline. However, there was a notable improvement in the operating ROA to 12.86% as of December 31, 2022. Subsequently, the ratio decreased to 10.67% as of December 31, 2023, and further dropped to 5.29% as of December 31, 2024.
The decreasing trend in operating ROA over the last two years warrants closer examination, indicating potential challenges in efficiently utilizing assets to generate operating income. It would be advisable for stakeholders to investigate the factors contributing to this decline and identify strategies to enhance asset efficiency going forward.