MGP Ingredients Inc (MGPI)
Financial leverage 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 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 |
| 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 |
| Financial leverage ratio | 1.64 | 1.67 | 1.73 | 1.52 | 1.55 | 1.56 | 1.57 | 1.58 | 1.62 | 1.65 | 1.71 | 1.37 | 1.40 | 1.44 | 1.47 | 1.62 | 1.40 | 1.40 | 1.41 | 1.41 |
December 31, 2023 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $1,392,350K ÷ $850,492K
= 1.64
The financial leverage ratio of MGP Ingredients, Inc. has been fluctuating over the past eight quarters. The ratio ranged from a low of 1.52 in Q1 2023 to a high of 1.73 in Q2 2023, with an overall average of around 1.60. This indicates that the company's reliance on debt to finance its operations has been relatively stable, although there have been slight variations in certain quarters.
A financial leverage ratio of 1.60 suggests that MGP Ingredients, Inc. has more assets funded by debt compared to equity. While the company may be taking advantage of debt to fuel its growth or investments, it is important to monitor this ratio closely to ensure that the level of debt is sustainable and does not pose a significant risk to the company's financial health.
Overall, MGP Ingredients, Inc. appears to have a moderate level of financial leverage, but investors and stakeholders should continue to assess the company's ability to manage its debt effectively and maintain a healthy balance between debt and equity financing.