MGP Ingredients Inc (MGPI)
Debt-to-assets ratio
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 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 assets | US$ in thousands | 1,392,350 | 1,366,360 | 1,395,130 | 1,184,190 | 1,158,210 | 1,132,080 | 1,106,620 | 1,076,820 | 1,041,470 | 1,017,470 | 1,014,300 | 381,102 | 366,575 | 361,746 | 357,013 | 382,402 | 322,597 | 307,020 | 298,724 | 290,100 |
| Debt-to-assets ratio | 0.20 | 0.23 | 0.23 | 0.19 | 0.03 | 0.20 | 0.21 | 0.21 | 0.03 | 0.04 | 0.04 | 0.10 | 0.10 | 0.11 | 0.11 | 0.11 | 0.13 | 0.13 | 0.14 | 0.15 |
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 measures the proportion of a company's assets that are financed by debt. A lower ratio indicates that the company relies less on debt to finance its operations and investments, whereas a higher ratio suggests a higher level of financial risk due to increased leverage.
Analyzing the trend in MGP Ingredients, Inc.'s debt-to-assets ratio over the past eight quarters shows some fluctuations but generally maintains a relatively stable range. From Q4 2022 to Q1 2023, the ratio decreased from 0.20 to 0.19 before increasing slightly in the following quarters. The ratios for Q2 and Q3 2023 plateaued at 0.23, indicating a consistent level of debt relative to assets during that period.
The company's debt-to-assets ratio averaging around 0.21 over the past eight quarters suggests that MGP Ingredients, Inc. has a moderate level of debt compared to its total assets. This indicates a balanced approach to leveraging debt as part of its capital structure. It is essential to monitor this ratio over time to assess the company's ability to manage its debt obligations and financial risk effectively.