MGP Ingredients Inc (MGPI)
Profitability ratios
Return on sales
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross profit margin | 40.69% | 40.26% | 38.66% | 36.93% | 36.43% | 34.80% | 33.46% | 31.89% | 32.38% | 32.03% | 32.83% | 33.42% | 31.75% | 31.73% | 29.56% | 26.66% | 24.98% | 22.90% | 22.48% | 22.29% |
| Operating profit margin | 11.96% | 21.37% | 18.40% | 17.40% | 17.77% | 15.88% | 17.84% | 17.04% | 18.25% | 21.70% | 22.30% | 21.85% | 20.16% | 17.22% | 15.88% | 15.08% | 13.71% | 14.20% | 14.11% | 14.07% |
| Pretax margin | 9.73% | 19.14% | 16.15% | 15.87% | 16.94% | 15.84% | 17.75% | 16.79% | 17.92% | 20.53% | 21.24% | 20.96% | 19.32% | 16.60% | 15.40% | 14.72% | 13.30% | 13.75% | 13.67% | 13.61% |
| Net profit margin | 4.89% | 14.56% | 12.31% | 12.04% | 12.85% | 12.19% | 13.65% | 13.03% | 13.90% | 15.52% | 16.05% | 15.76% | 14.46% | 12.58% | 11.73% | 11.26% | 10.13% | 10.69% | 10.47% | 10.37% |
Based on the profitability ratios of MGP Ingredients Inc, we can observe the following trends:
1. Gross Profit Margin:
- The gross profit margin has been steadily increasing from 22.29% in March 2020 to 40.69% in December 2024.
- This indicates that the company has been able to improve its cost efficiency and pricing strategies over the analyzed period.
2. Operating Profit Margin:
- The operating profit margin fluctuated over the years, with significant increases in the first half of 2021, followed by a decline in profitability in 2022 and 2023, and a sharp increase in September and December 2024.
- Overall, the operating profit margin has shown some volatility but ended the period on an upward trend.
3. Pretax Margin:
- The pretax margin has also shown fluctuations, with a peak in December 2021 followed by a decline in 2022 and 2023.
- The margin recovered in the second half of 2024 but remained lower than the levels seen in 2021.
4. Net Profit Margin:
- The net profit margin has followed a similar pattern to the pretax margin, reaching a peak in December 2021 and then declining in the following years.
- The net profit margin in December 2024 was significantly lower compared to previous years, indicating potential challenges in managing expenses or generating revenue.
Overall, MGP Ingredients Inc has shown improvements in its gross profit margin, but the operating, pretax, and net profit margins have displayed some volatility and downward trends over the analyzed period. It is important for the company to focus on maintaining and enhancing profitability through effective cost management and revenue generation strategies.
Return on investment
| 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 return on assets (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% |
| Return on assets (ROA) | 2.45% | 7.46% | 6.76% | 6.98% | 7.72% | 7.25% | 7.85% | 8.67% | 9.39% | 10.40% | 10.64% | 10.44% | 8.70% | 6.93% | 5.63% | 11.96% | 10.93% | 11.44% | 10.99% | 10.11% |
| Return on total capital | 10.30% | 17.81% | 19.23% | 19.29% | 20.66% | 19.29% | 18.33% | 17.80% | 19.66% | 16.87% | 17.37% | 18.37% | 14.79% | 16.53% | 13.96% | 20.57% | 19.24% | 21.81% | 21.80% | 22.26% |
| Return on equity (ROE) | 4.13% | 11.75% | 10.84% | 11.19% | 12.64% | 12.09% | 13.56% | 13.23% | 14.58% | 16.24% | 16.74% | 16.54% | 14.06% | 11.46% | 9.63% | 16.37% | 15.27% | 16.42% | 16.17% | 16.41% |
MGP Ingredients Inc's profitability ratios show some fluctuations over the reporting periods. The Operating Return on Assets (Operating ROA) increased from 13.71% on March 31, 2020, to a peak of 16.01% on March 31, 2021, before decreasing to 10.09% on March 31, 2024. This ratio indicates how efficiently the company is generating profits from its assets used in its core operations.
The Return on Assets (ROA) followed a similar trend, increasing from 10.11% on March 31, 2020, to a peak of 11.96% on March 31, 2021, and then dropping to 2.45% on December 31, 2024. ROA evaluates the company's ability to generate profits from its total assets, including debt and equity investments.
Return on Total Capital also showed fluctuations, reaching a high of 22.26% on March 31, 2020, and dropping to 10.30% on December 31, 2024. This metric assesses the company's profitability concerning all the capital invested in the business, including debt and equity.
Return on Equity (ROE) experienced fluctuations as well, peaking at 16.74% on June 30, 2022, and decreasing to 4.13% on December 31, 2024. ROE measures the company's ability to generate profits from shareholders' equity.
Overall, the profitability ratios of MGP Ingredients Inc indicate a mix of efficiency in generating profits from assets and investments, with some periods of decline in profitability as well. Investors and analysts may want to closely monitor these ratios to assess the company's financial performance and sustainability over time.