MGP Ingredients Inc (MGPI)
Financial leverage ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 1,405,780 | 1,392,350 | 1,158,210 | 1,041,470 | 366,575 |
| Total stockholders’ equity | US$ in thousands | 834,166 | 850,492 | 745,644 | 644,265 | 262,526 |
| Financial leverage ratio | 1.69 | 1.64 | 1.55 | 1.62 | 1.40 |
December 31, 2024 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $1,405,780K ÷ $834,166K
= 1.69
The financial leverage ratio of MGP Ingredients Inc has shown a fluctuating trend over the past five years. Starting at 1.40 in December 2020, the ratio increased to 1.62 by December 2021, indicating a higher level of debt relative to equity. In the following years, the ratio continued to vary, reaching 1.55 in December 2022, 1.64 in December 2023, and finally 1.69 in December 2024. This suggests that the company's reliance on debt as a source of financing has been increasing over time, which may pose higher financial risks and obligations. It is essential for stakeholders to monitor this ratio closely to assess the company's financial health and sustainability in managing its debt levels effectively.