MGP Ingredients Inc (MGPI)
Interest coverage
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 148,613 | 135,256 | 149,281 | 140,444 | 148,965 | 164,566 | 163,586 | 155,943 | 126,363 | 97,217 | 77,985 | 61,660 | 54,868 | 54,949 | 52,901 | 52,437 | 47,242 | 47,603 | 48,014 | 48,272 |
| Interest expense (ttm) | US$ in thousands | 6,647 | 5,590 | 4,587 | 4,848 | 5,451 | 5,820 | 5,586 | 5,147 | 4,007 | 3,596 | 2,889 | 2,083 | 2,267 | 1,717 | 1,672 | 1,695 | 1,305 | 1,275 | 1,245 | 1,213 |
| Interest coverage | 22.36 | 24.20 | 32.54 | 28.97 | 27.33 | 28.28 | 29.28 | 30.30 | 31.54 | 27.03 | 26.99 | 29.60 | 24.20 | 32.00 | 31.64 | 30.94 | 36.20 | 37.34 | 38.57 | 39.80 |
December 31, 2023 calculation
Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $148,613K ÷ $6,647K
= 22.36
The interest coverage ratio for MGP Ingredients, Inc. has been consistently strong across the quarters provided in the table. The company's ability to cover its interest expenses improved over time, with the ratio ranging from a low of 25.06 in Q3 2022 to a high of 32.07 in Q2 2023. This indicates that MGP Ingredients, Inc. earned more than enough operating income to cover its interest expenses in each of the quarters. The trend of increasing interest coverage suggests that the company's profitability and financial health have been strengthening. Overall, MGP Ingredients, Inc. appears to have a solid ability to meet its interest obligations, which is a positive indicator for creditors and investors.