B&G Foods Inc (BGS)

Days of inventory on hand (DOH)

		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
Inventory turnover		3.17	2.75	3.34	3.36	3.24	3.11	2.98	2.91	2.85	2.57	2.92	3.10	3.05	2.65	3.23	3.51	3.43	3.46	4.43	3.70
DOH	days	115.04	132.61	109.42	108.47	112.55	117.35	122.69	125.48	127.97	142.29	125.16	117.70	119.65	137.72	113.03	104.03	106.34	105.37	82.31	98.55

December 31, 2024 calculation

DOH = 365 ÷ Inventory turnover
= 365 ÷ 3.17
= 115.04

Days of Inventory on Hand (DOH) is a key financial ratio that measures how efficiently a company manages its inventory by indicating the number of days it takes to sell its average inventory.

Analyzing the DOH trend for B&G Foods Inc from March 31, 2020, to December 31, 2024, reveals fluctuating inventory management practices.

The company started with a DOH of 98.55 days in March 2020, indicating it takes approximately 98 days to sell its inventory. The ratio decreased to 82.31 days by June 2020, suggesting an improvement in inventory turnover. However, the trend reversed as DOH increased to 105.37 days by September 2020 and reached its peak at 142.29 days in September 2022, reflecting potentially inefficient inventory management.

Subsequently, B&G Foods Inc made improvements as the DOH gradually decreased to 108.47 days by March 2024. The company maintained relatively stable inventory management with fluctuations around the 110-day mark towards the end of the analyzed period.

Overall, monitoring DOH is crucial for B&G Foods Inc to optimize inventory levels, minimize carrying costs, and enhance operational efficiency in the supply chain. This ratio provides insights into the company's inventory management effectiveness and highlights areas for improvement to ensure sustainable growth and profitability.