MGP Ingredients Inc (MGPI)
Debt-to-assets ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Long-term debt | US$ in thousands | 280,849 | 29,510 | 35,266 | 38,271 | 40,658 |
| Total assets | US$ in thousands | 1,392,350 | 1,158,210 | 1,041,470 | 366,575 | 322,597 |
| Debt-to-assets ratio | 0.20 | 0.03 | 0.03 | 0.10 | 0.13 |
December 31, 2023 calculation
Debt-to-assets ratio = Long-term debt ÷ Total assets
= $280,849K ÷ $1,392,350K
= 0.20
The debt-to-assets ratio for MGP Ingredients, Inc. has shown some variability over the past five years. In 2023, the ratio increased to 0.21 from 0.20 in 2022, indicating that the company's reliance on debt in relation to its total assets slightly increased. This may suggest a moderate degree of financial leverage in the most recent year.
Comparing this to historical data, the ratio was higher in 2021 at 0.22 but lower in 2020 and 2019 at 0.11 and 0.13, respectively. The significant increase in 2021 suggests a higher proportion of debt to assets, potentially signaling an increase in the company's borrowing or an adjustment in asset composition.
Overall, it is important to monitor the trend of the debt-to-assets ratio over time to assess the company's financial risk and capital structure management. A higher ratio implies higher financial risk due to increased debt obligations, while a lower ratio may indicate a more conservative approach to financing operations with a stronger emphasis on equity.