MGP Ingredients Inc (MGPI)
Debt-to-capital 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 stockholders’ equity | US$ in thousands | 850,492 | 746,724 | 644,755 | 262,526 | 231,044 |
| Debt-to-capital ratio | 0.25 | 0.04 | 0.05 | 0.13 | 0.15 |
December 31, 2023 calculation
Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $280,849K ÷ ($280,849K + $850,492K)
= 0.25
The debt-to-capital ratio of MGP Ingredients, Inc. has varied over the past five years. In 2023, the ratio stood at 0.25, indicating that 25% of the company's capital structure was financed by debt. Comparing this to prior years, the ratio has shown a slight increase from 0.24 in 2022 and a decrease from 0.27 in 2021.
It is noteworthy that the ratio was relatively low in 2020 at 0.13 and 2019 at 0.15, indicating that the company relied less on debt financing during those periods. The upward trend seen in recent years suggests that MGP Ingredients might have been taking on more debt to fund its operations or expansion initiatives.
Overall, the fluctuation in the debt-to-capital ratio reflects changes in MGP Ingredients' capital structure and its financing strategies over the years. Investors and analysts may monitor this ratio to assess the company's leverage and financial risk levels.