B&G Foods Inc (BGS)

Short-term

Turnover ratios

B&G Foods Inc's activity ratios provide insights into the efficiency of the company in managing its assets and liabilities.

1. Inventory Turnover:
- Inventory turnover measures how many times a company sells and replaces its inventory during a specific period.
- B&G Foods' inventory turnover has fluctuated over the years, from 3.43 in 2020 to 4.13 in 2024.
- The decreasing trend in inventory turnover from 2020 to 2022 (3.43 to 2.85) indicates the company is holding onto inventory for a longer period, which may lead to higher carrying costs or obsolete inventory issues.
- However, the increase in inventory turnover from 2022 to 2024 (2.85 to 4.13) suggests that the company has improved its inventory management efficiency.

2. Receivables Turnover:
- Receivables turnover shows how many times a company collects its accounts receivable during a period.
- B&G Foods' receivables turnover has been relatively stable, ranging from 10.65 in 2024 to 13.70 in 2021.
- A higher receivables turnover ratio indicates that B&G Foods is efficient at collecting payments from its customers.
- The decrease in receivables turnover from 13.70 in 2021 to 10.65 in 2024 may suggest potential issues with collecting receivables efficiently.

3. Payables Turnover:
- Payables turnover measures how many times a company pays its suppliers during a period.
- B&G Foods' payables turnover has shown an increasing trend from 13.37 in 2020 to 18.64 in 2024.
- An increasing payables turnover ratio indicates that B&G Foods is taking longer to pay its suppliers, which could signal improved cash management or negotiation of favorable credit terms.

4. Working Capital Turnover:
- Working capital turnover measures how efficiently a company generates sales from its working capital.
- B&G Foods' working capital turnover has fluctuated, with a peak of 3.99 in 2020 and a low of 2.90 in 2022.
- A higher working capital turnover ratio indicates that B&G Foods is effectively using its working capital to generate sales.
- The fluctuations in B&G Foods' working capital turnover suggest varying efficiency in utilizing working capital over the years.

In conclusion, analyzing B&G Foods' activity ratios provides valuable insights into the company's operational efficiency, inventory management, accounts receivable collection, payment practices, and working capital utilization.

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Average number of days

Based on the provided data for B&G Foods Inc, the activity ratios can be analyzed as follows:

1. Days of Inventory on Hand (DOH):
- In December 2020, the company had an average of 106.34 days of inventory on hand. This increased to 119.65 days by December 2021 and further to 127.97 days by December 2022. However, there was a slight decrease in DOH to 112.55 days by December 2023 and a significant drop to 88.41 days by December 2024. A decreasing trend in DOH indicates that the company is managing its inventory more efficiently, which could lead to cost savings and improved liquidity.

2. Days of Sales Outstanding (DSO):
- The DSO for B&G Foods Inc was 27.65 days in December 2020. It decreased slightly to 26.63 days by December 2021 and remained relatively stable around 26-27 days until December 2023. However, there was a noticeable increase to 34.29 days by December 2024. A higher DSO suggests that the company is taking more time to collect its accounts receivable, which could impact cash flow and liquidity.

3. Number of Days of Payables:
- The number of days of payables decreased from 27.31 days in December 2020 to 19.58 days by December 2024. A decreasing trend in the number of days of payables indicates that the company is taking less time to pay its suppliers, which could potentially strain supplier relationships but also improve cash conversion cycle and working capital management.

Overall, while the company showed improvement in managing its inventory and payables efficiently, there was an increase in the days of sales outstanding by the end of 2024, which could be a concern regarding its collection practices. Further analysis of these ratios and their impact on the company's overall financial health would provide a more comprehensive understanding of B&G Foods Inc's operational performance.

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Long-term

B&G Foods Inc's fixed asset turnover has shown a consistent increasing trend over the years, from 5.28 in 2020 to 6.94 in 2024. This indicates that the company is generating more revenue relative to its investment in fixed assets, reflecting improved efficiency in utilizing its long-term assets to generate sales.

Similarly, the total asset turnover ratio has also been increasing steadily, from 0.52 in 2020 to 0.64 in 2024. This suggests that B&G Foods is effectively utilizing its total assets to generate sales, which is a positive signal for the company's operational efficiency and overall performance.

Overall, the increasing trends in both fixed asset turnover and total asset turnover ratios signify that B&G Foods Inc has been successful in managing its long-term assets to drive revenue growth and enhance productivity over the years.