MGP Ingredients Inc (MGPI)
Return on assets (ROA)
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 34,663 | 107,475 | 109,462 | 91,307 | 40,345 |
| Total assets | US$ in thousands | 1,405,780 | 1,392,350 | 1,158,210 | 1,041,470 | 366,575 |
| ROA | 2.47% | 7.72% | 9.45% | 8.77% | 11.01% |
December 31, 2024 calculation
ROA = Net income ÷ Total assets
= $34,663K ÷ $1,405,780K
= 2.47%
The return on assets (ROA) of MGP Ingredients Inc declined from 11.01% as of December 31, 2020, to 8.77% as of December 31, 2021. It then improved slightly to 9.45% as of December 31, 2022, before dropping to 7.72% as of December 31, 2023. However, the company's ROA experienced a more significant decrease to 2.47% as of December 31, 2024. This declining trend in ROA indicates a decreasing efficiency in generating profits from its assets over the years, which may raise concerns about the company's operational effectiveness and asset utilization. Further analysis of the company's financial performance and operational strategies would be necessary to understand the underlying reasons for this downward trajectory in ROA.