MGP Ingredients Inc (MGPI)
Solvency ratios
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-capital ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-equity ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Financial leverage ratio | 1.69 | 1.58 | 1.60 | 1.60 | 1.64 | 1.67 | 1.73 | 1.53 | 1.55 | 1.56 | 1.57 | 1.58 | 1.62 | 1.65 | 1.71 | 1.37 | 1.40 | 1.44 | 1.47 | 1.62 |
MGP Ingredients Inc has consistently maintained a strong solvency position as reflected in its solvency ratios. The Debt-to-assets ratio, Debt-to-capital ratio, and Debt-to-equity ratio have all consistently remained at 0.00 over the analyzed period from March 31, 2020, to December 31, 2024. This indicates that the company has not relied on debt to finance its assets or operations during this period.
The Financial leverage ratio has shown a slight fluctuation, ranging from 1.37 to 1.73, but overall remaining relatively stable. This ratio measures the company's ability to meet its financial obligations and shows that MGP Ingredients Inc has maintained a conservative capital structure with a low level of debt relative to equity.
Overall, based on the solvency ratios analysis, it can be concluded that MGP Ingredients Inc has a strong financial position with low leverage and a healthy balance sheet structure, which are positive indicators of the company's ability to weather financial challenges and sustain its operations in the long term.
Coverage ratios
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Interest coverage | 10.16 | 19.36 | 20.01 | 21.80 | 26.43 | 28.29 | 32.26 | 28.50 | 26.89 | 21.01 | 21.89 | 24.27 | 23.78 | 34.26 | 36.65 | 39.36 | 30.80 | 32.00 | 31.64 | 30.94 |
The interest coverage ratio for MGP Ingredients Inc has shown a generally healthy trend in recent quarters, indicating the company's ability to meet its interest obligations with its earnings. The ratio has consistently remained above 20.00 in the period from March 31, 2020, to December 31, 2023, peaking at 39.36 on March 31, 2021. This suggests that the company's operating income has been sufficient to cover its interest expenses almost 40 times at its peak.
However, there was a notable decline in the interest coverage ratio starting from December 31, 2023, dropping to 10.16 by the end of December 31, 2024. This decrease could indicate increased financial risk for the company as a lower ratio implies a potentially lower ability to cover interest payments from operating income. It would be advisable for stakeholders and investors to monitor this trend closely to assess the impact on the company's financial health and sustainability.