Cardinal Ethanol LLC

Cardinal Ethanol maintains a strong liquidity position with a current ratio of 4.65, indicating the company can cover its short-term liabilities more than four times over [doc:CRDE-VAL-2023]. The company's debt-to-equity ratio of 0.18 suggests a conservative capital structure, with total liabilities of $60.2 million compared to total equity of $172.5 million [doc:CRDE-FIN-2023]. Despite this, the company reports negative net cash after subtracting total debt, signaling potential liquidity constraints [doc:CRDE-RISK-2023]. Profitability metrics show a return on equity of 40.47% and a return on assets of 29.99%, both significantly above the industry median for Renewable Fuels. These figures reflect strong operational efficiency and asset utilization [doc:CRDE-VAL-2023]. The company's operating margin of 13.26% (calculated from operating income of $66.7 million on revenue of $502.7 million) is also well above the sector average [doc:CRDE-FIN-2023]. The company's revenue is concentrated in two segments: the Ethanol Division and the Trading Division. The Ethanol Division is the primary revenue driver, with operations focused on ethanol and co-product sales. The Trading Division, which handles grain commodities, is a smaller but complementary segment [doc:CRDE-10K-2023]. Geographically, the company operates primarily in the United States, with no disclosed international operations [doc:CRDE-10K-2023]. Looking ahead, the company is projected to see a 12.3% increase in revenue in the current fiscal year, driven by higher ethanol prices and improved production efficiency. For the next fiscal year, a 7.8% growth is expected, assuming stable commodity prices and continued demand for renewable fuels [doc:CRDE-OUTLOOK-2023]. Historical revenue growth has averaged 9.1% annually over the past five years [doc:CRDE-FIN-2023]. Risk factors include exposure to commodity price volatility and regulatory changes in the renewable fuels sector. The company's liquidity risk is rated as medium, primarily due to negative net cash after debt. Dilution risk is low, with no near-term pressure from share issuance or convertible debt [doc:CRDE-RISK-2023]. The company has not made any significant capital commitments in the past year, and its capital expenditure of -$27.9 million indicates asset sales or write-downs [doc:CRDE-FIN-2023]. Recent events include the filing of its 2023 10-K, which disclosed continued investment in production efficiency and a strategic focus on grain trading to diversify revenue streams. No major legal or regulatory actions were reported in the latest filings [doc:CRDE-10K-2023].