MGP Ingredients Inc (MGPI)
Return on equity (ROE)
| 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 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Net income (ttm) | US$ in thousands | 107,475 | 99,065 | 109,662 | 103,096 | 109,462 | 118,674 | 118,742 | 113,317 | 91,307 | 71,070 | 57,575 | 45,930 | 40,345 | 41,660 | 39,494 | 38,915 | 38,793 | 37,668 | 38,461 | 38,077 |
| Total stockholders’ equity | US$ in thousands | 850,492 | 819,590 | 808,403 | 777,066 | 746,724 | 724,794 | 703,827 | 679,961 | 644,755 | 615,190 | 593,578 | 278,511 | 262,526 | 252,001 | 242,697 | 235,565 | 231,044 | 219,420 | 212,442 | 205,119 |
| ROE | 12.64% | 12.09% | 13.57% | 13.27% | 14.66% | 16.37% | 16.87% | 16.67% | 14.16% | 11.55% | 9.70% | 16.49% | 15.37% | 16.53% | 16.27% | 16.52% | 16.79% | 17.17% | 18.10% | 18.56% |
December 31, 2023 calculation
ROE = Net income (ttm) ÷ Total stockholders’ equity
= $107,475K ÷ $850,492K
= 12.64%
MGP Ingredients, Inc.'s return on equity (ROE) has shown a downward trend over the past eight quarters, declining from 16.74% in Q2 2022 to 12.51% in Q4 2023. This indicates a decrease in the company's ability to generate profits from its shareholders' equity during this period.
The average ROE for the latest four quarters is 12.53%, reflecting a slightly lower performance compared to the earlier quarters. The ROE values have remained above 10% throughout the period, suggesting that the company is generally able to generate a reasonable return for its shareholders.
It is essential for the company to closely monitor and analyze the factors contributing to the decrease in ROE to identify areas for improvement and take necessary steps to enhance shareholder value. Further investigation into the company's profitability, asset management efficiency, and financial leverage may provide insights into the factors influencing the ROE trend.