MGP Ingredients Inc (MGPI)
Operating return on assets (Operating ROA)
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Operating income (ttm) | US$ in thousands | 84,149 | 157,663 | 144,938 | 140,258 | 148,613 | 129,077 | 143,102 | 134,265 | 142,786 | 164,566 | 163,586 | 155,943 | 126,363 | 96,590 | 77,358 | 61,033 | 54,241 | 54,949 | 52,901 | 52,437 |
| Total assets | US$ in thousands | 1,405,780 | 1,440,620 | 1,434,100 | 1,390,280 | 1,392,350 | 1,366,360 | 1,395,130 | 1,184,190 | 1,158,210 | 1,132,080 | 1,106,620 | 1,076,820 | 1,041,470 | 1,017,470 | 1,014,300 | 381,102 | 366,575 | 361,746 | 357,013 | 382,402 |
| Operating ROA | 5.99% | 10.94% | 10.11% | 10.09% | 10.67% | 9.45% | 10.26% | 11.34% | 12.33% | 14.54% | 14.78% | 14.48% | 12.13% | 9.49% | 7.63% | 16.01% | 14.80% | 15.19% | 14.82% | 13.71% |
December 31, 2024 calculation
Operating ROA = Operating income (ttm) ÷ Total assets
= $84,149K ÷ $1,405,780K
= 5.99%
Operating return on assets (Operating ROA) measures the efficiency of MGP Ingredients Inc in generating operating profits relative to its total assets. Analyzing the trend of operating ROA from March 2020 to December 2024 reveals fluctuations in the company's operational performance.
The operating ROA of MGP Ingredients Inc increased steadily from March 2020 to March 2021, peaking at 16.01%. However, a significant decline was observed in the subsequent quarter (June 2021) to 7.63%, indicating a notable decrease in operational efficiency. The company made a partial recovery in the following quarters but remained below the peak levels achieved in early 2021.
From September 2021 to September 2024, MGP Ingredients Inc experienced a general downward trend in operating ROA, with fluctuations in performance levels. The company's operating ROA ranged between 9.45% and 14.78% during this period, showing some inconsistency in its operational profitability.
In the last reported quarter of December 2024, the operating ROA dropped to 5.99%, marking a significant decrease from the previous quarter. This decline may suggest challenges or issues impacting the company's ability to generate operating profits efficiently relative to its asset base.
Overall, the analysis of MGP Ingredients Inc operating ROA indicates a mix of positive trends and potential challenges in operational performance over the analyzed period. It is essential for stakeholders to monitor these fluctuations closely to understand the company's financial health and strategic direction.