MGP Ingredients Inc (MGPI)

Return on total capital

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
Earnings before interest and tax (EBIT) (ttm) US$ in thousands 148,613 135,256 149,281 140,444 148,965 164,566 163,586 155,943 126,363 97,217 77,985 61,660 54,868 54,949 52,901 52,437 47,242 47,603 48,014 48,272
Long-term debt US$ in thousands 280,849 310,277 318,704 223,219 29,510 226,251 227,764 229,449 35,266 36,068 36,870 37,476 38,271 40,363 40,463 40,561 40,658 40,929 42,096 42,587
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
Return on total capital 13.14% 11.97% 13.24% 14.04% 19.19% 17.30% 17.56% 17.15% 18.58% 14.93% 12.37% 19.51% 18.24% 18.79% 18.68% 18.99% 17.39% 18.28% 18.86% 19.49%

December 31, 2023 calculation

Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $148,613K ÷ ($280,849K + $850,492K)
= 13.14%

Based on the data provided for MGP Ingredients, Inc., the return on total capital has shown some fluctuation over the past eight quarters. The return on total capital ranged from a low of 12.98% in Q2 2023 to a high of 15.56% in Q2 2022. Generally, the return on total capital has been relatively stable, with the percentage staying within the 12.98% to 15.56% range over the period analyzed.

Overall, MGP Ingredients, Inc. has been able to generate a reasonable return on total capital, indicating the company's ability to efficiently utilize its total capital to generate profits. Investors and stakeholders may find this consistent performance in return on total capital reassuring, as it suggests that MGP Ingredients, Inc. is effectively managing its capital resources to create value for its shareholders.