B&G Foods Inc (BGS)

Fixed asset turnover

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Revenue	US$ in thousands	2,053,870	2,163,840	2,049,690	1,962,560	1,654,640
Property, plant and equipment	US$ in thousands	302,288	317,587	341,471	371,854	304,934
Fixed asset turnover		6.79	6.81	6.00	5.28	5.43

December 31, 2023 calculation

Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $2,053,870K ÷ $302,288K
= 6.79

The fixed asset turnover ratio measures how efficiently a company is utilizing its fixed assets to generate sales. For B&G Foods Inc, its fixed asset turnover has been consistently improving over the past five years. The ratio increased from 5.43 in 2019 to 6.79 in 2023, indicating that the company has been able to generate more sales relative to its investment in fixed assets.

An increasing trend in fixed asset turnover suggests that B&G Foods Inc is managing its fixed assets effectively to drive revenue growth. This can be attributed to better utilization of its property, plant, and equipment in generating sales, as well as potential improvements in operational efficiency. Overall, the rising fixed asset turnover ratio reflects positively on the company's ability to optimize its asset base and generate sustainable revenue growth.