MGP Ingredients Inc (MGPI)
Debt-to-equity ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Long-term debt | US$ in thousands | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 834,166 | 850,492 | 745,644 | 644,265 | 262,526 |
| Debt-to-equity ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
December 31, 2024 calculation
Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $—K ÷ $834,166K
= 0.00
Based on the data provided, MGP Ingredients Inc has consistently maintained a debt-to-equity ratio of 0.00 over the past five years, including as of December 31, 2024. This indicates that the company has not utilized any debt to finance its operations, and instead relies primarily on equity for funding.
A debt-to-equity ratio of 0.00 typically signifies a strong financial position, as it suggests that the company is not burdened by excessive debt obligations relative to its equity. Investors and creditors generally view a lower debt-to-equity ratio favorably, as it implies lower financial risk and greater financial stability.
In the case of MGP Ingredients Inc, the consistent 0.00 debt-to-equity ratio reflects a strategy of conservative financing and a strong balance sheet. However, it is important to note that while low debt levels can be advantageous, excessively low debt may also indicate underutilization of leverage for potential growth opportunities.