B&G Foods Inc (BGS)

Short-term

Turnover ratios

B&G Foods Inc's activity ratios provide insight into how efficiently the company manages its resources related to inventory, receivables, payables, and working capital.

1. Inventory Turnover:
B&G Foods Inc's inventory turnover has varied over the past five years, ranging from 2.85 to 3.43. A higher inventory turnover ratio indicates that the company is selling its inventory more efficiently. The recent ratio of 3.24 in 2023 suggests that the company has improved its ability to manage and sell inventory compared to the previous year.

2. Receivables Turnover:
The receivables turnover ratio measures how quickly the company collects outstanding receivables. B&G Foods Inc has consistently maintained a healthy receivables turnover ratio, with values fluctuating between 10.83 and 13.70 over the past five years. The high receivables turnover ratio in 2023, at 13.60, indicates that the company is efficiently collecting payments from its customers.

3. Payables Turnover:
The payables turnover ratio assesses how effectively the company pays its suppliers. B&G Foods Inc's payables turnover has been relatively stable, with values ranging from 12.69 to 16.21. A higher payables turnover ratio suggests that the company is paying its bills more quickly. The decrease in the payables turnover ratio to 14.91 in 2023 from 16.21 in 2022 may indicate that the company is taking longer to pay its suppliers compared to the previous year.

4. Working Capital Turnover:
The working capital turnover ratio reflects how efficiently the company uses its working capital to generate sales. B&G Foods Inc's working capital turnover ratio has been relatively consistent, ranging from 2.90 to 3.99. The increase in the working capital turnover ratio to 3.80 in 2023 suggests that the company is generating more sales relative to its working capital compared to the previous year.

Overall, B&G Foods Inc's activity ratios indicate that the company is managing its inventory, receivables, payables, and working capital efficiently, with some fluctuations in performance over the years.

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Average number of days

Based on the activity ratios provided for B&G Foods Inc, we observe the following trends:

1. Days of Inventory on Hand (DOH):
- The number of days of inventory on hand has varied over the past five years, ranging from a low of 106.34 days in 2020 to a high of 127.97 days in 2022.
- A decreasing trend is seen from 2022 to 2023, which indicates that B&G Foods is managing its inventory more efficiently by turning over inventory faster.
- Overall, the company seems to have effectively managed its inventory levels from 2020 to 2023, with fluctuations likely reflecting changes in demand and supply chain dynamics.

2. Days of Sales Outstanding (DSO):
- The days of sales outstanding have shown relatively stable performance over the years, with a slight decrease from 33.72 days in 2019 to 26.84 days in 2023.
- A lower DSO indicates that the company is collecting its accounts receivable more quickly, which is a positive sign of efficient receivables management.
- The consistent performance in managing sales outstanding days suggests that B&G Foods has maintained a disciplined approach to credit and collections.

3. Number of Days of Payables:
- The number of days of payables has fluctuated over the years, with the lowest level recorded in 2022 at 22.51 days and the highest in 2019 at 28.75 days.
- There is an apparent decrease in days of payables from 2022 to 2023, indicating that B&G Foods may be taking longer to pay its suppliers.
- The fluctuations in payables days suggest that the company may be adjusting its payment terms with suppliers based on cash flow needs or negotiation strategies.

In conclusion, the analysis of B&G Foods Inc's activity ratios illustrates management's effectiveness in inventory turnover, accounts receivable collection, and accounts payable management. The decreasing trends in inventory days and stable sales outstanding days reflect operational efficiency, while the fluctuating payables days may indicate flexibility in managing cash flow and supplier relationships.

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Long-term

The fixed asset turnover ratio measures how effectively a company is utilizing its fixed assets to generate revenue. From 2019 to 2023, B&G Foods Inc's fixed asset turnover ratio has generally shown an increasing trend, indicating improving efficiency in generating sales from its fixed assets. The company's fixed asset turnover ratio reached its peak at 6.81 in 2022 and remained relatively high at 6.79 in 2023.

In contrast, the total asset turnover ratio reflects how efficiently the company is using all its assets to generate sales. B&G Foods Inc's total asset turnover ratio has also shown a positive trend from 2019 to 2023. The company's total asset turnover ratio increased consistently each year, reaching 0.59 in 2023, indicating that the company is generating more sales relative to its total assets.

Overall, both the fixed asset turnover and total asset turnover ratios for B&G Foods Inc have been steadily increasing, suggesting effective management and utilization of the company's assets to drive revenue growth. This trend indicates an improvement in operational efficiency and effective asset utilization over the years.