B&G Foods Inc (BGS)

Days of inventory on hand (DOH)

		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	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Inventory turnover		3.15	3.03	2.90	2.83	2.85	2.57	2.92	3.10	3.05	2.65	3.23	3.51	3.43	3.46	4.43	3.70	3.09	2.84	3.72	4.08
DOH	days	115.83	120.49	125.96	128.78	127.97	142.29	125.16	117.70	119.65	137.72	113.03	104.03	106.34	105.37	82.31	98.55	118.17	128.51	98.10	89.48

December 31, 2023 calculation

DOH = 365 ÷ Inventory turnover
= 365 ÷ 3.15
= 115.83

The days of inventory on hand (DOH) ratio measures how many days, on average, a company's current inventory will last. A higher DOH indicates that the company holds inventory for a longer period before selling it, which may tie up working capital and indicate inefficiencies in inventory management.

Analyzing B&G Foods Inc's DOH over the past few years, we observe fluctuations in the ratio. The trend shows some volatility, with periods of increased DOH followed by decreases and vice versa. For example, there was a significant increase in DOH from Jun 2022 to Sep 2022, indicating that inventory was held for a longer period during that time.

It is noteworthy that the DOH ratio has generally been quite high, exceeding 100 days in many quarters. This suggests that B&G Foods Inc tends to maintain a significant amount of inventory relative to its sales levels. While this may be a deliberate strategy to ensure product availability, it can also lead to increased carrying costs and the risk of obsolescence.

Furthermore, the downward trend observed from Jun 2021 to Mar 2021 and again from Mar 2021 to Jun 2021 could imply improvements in inventory management efficiency during those periods. However, the subsequent increase in DOH from Jun 2021 to Sep 2021 indicates a reversal of that trend.

Overall, B&G Foods Inc's days of inventory on hand ratio has experienced fluctuations, suggesting varying levels of inventory management effectiveness over the analyzed periods. Further investigation into the underlying reasons for these fluctuations and their impact on the company's operations and financial performance would be beneficial for a comprehensive understanding of inventory management practices at B&G Foods Inc.