B&G Foods Inc (BGS)

Days of sales outstanding (DSO)

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Receivables turnover		13.60	13.69	13.70	13.20	10.83
DSO	days	26.84	26.66	26.63	27.65	33.72

December 31, 2023 calculation

DSO = 365 ÷ Receivables turnover
= 365 ÷ 13.60
= 26.84

The Days of Sales Outstanding (DSO) for B&G Foods Inc has shown a generally decreasing trend over the past five years, indicating an improvement in the efficiency of the company's accounts receivable management. In 2019, the DSO was at its highest point at 33.72 days, which was reduced to 27.65 days by the end of 2020. The trend continued with further improvements in 2021, 2022, and 2023, where the DSO decreased to 26.63 days, 26.66 days, and 26.84 days respectively.

The decreasing DSO implies that B&G Foods Inc has been able to collect its accounts receivable more quickly over the years, which can be attributed to effective credit policies, efficient collection efforts, and potentially stronger customer creditworthiness. This improvement in DSO indicates better liquidity and cash flow management for the company, as it is receiving payments from its customers at a faster rate.

Overall, the decreasing trend in DSO reflects positively on B&G Foods Inc's ability to manage its accounts receivable efficiently and indicates a healthier financial position in terms of managing working capital. However, it is important for the company to continue monitoring and optimizing its accounts receivable processes to ensure continued efficiency in cash flow management.