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.