MGP Ingredients Inc (MGPI)

Debt-to-equity 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 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
Debt-to-equity ratio		0.33	0.38	0.39	0.29	0.04	0.31	0.32	0.34	0.05	0.06	0.06	0.13	0.15	0.16	0.17	0.17	0.18	0.19	0.20	0.21

December 31, 2023 calculation

Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $280,849K ÷ $850,492K
= 0.33

The debt-to-equity ratio of MGP Ingredients, Inc. has shown fluctuation over the past eight quarters, ranging from 0.30 to 0.40. A lower debt-to-equity ratio indicates that the company is relying more on equity financing rather than debt financing to fund its operations and growth.

The ratio was at its lowest in Q1 2023 at 0.30, indicating a higher proportion of equity relative to debt in the company's capital structure. This could signify a conservative approach to financing and potentially lower financial risk.

In contrast, the ratio peaked at 0.40 in Q2 2023, showing an increase in debt relative to equity. A higher debt-to-equity ratio may suggest that the company is taking on more leverage to finance its operations or expansion, which could lead to higher financial risk and interest obligations.

Overall, a sustained trend or significant deviation from the historical range of the debt-to-equity ratio could provide insights into the company's capital structure management and financial health. It is important for investors and stakeholders to monitor this ratio alongside other financial metrics to assess MGP Ingredients, Inc.'s leverage and risk profile effectively.