B&G Foods Inc (BGS)

Inventory turnover

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Cost of revenue	US$ in thousands	2,110,610	1,845,150	2,072,080	1,860,180	1,691,470
Inventory	US$ in thousands	511,232	568,980	726,468	609,794	492,804
Inventory turnover		4.13	3.24	2.85	3.05	3.43

December 31, 2024 calculation

Inventory turnover = Cost of revenue ÷ Inventory
= $2,110,610K ÷ $511,232K
= 4.13

Inventory turnover is a key financial ratio that measures how many times a company's inventory is sold and replaced within a specific period. For B&G Foods Inc, the trend in inventory turnover over the past five years is as follows:

- In 2020, the inventory turnover ratio was 3.43, indicating that the company turned over its inventory approximately 3.43 times during that year.
- By the end of 2021, the ratio decreased slightly to 3.05, suggesting a modest decline in the rate at which the company was selling and replacing its inventory.
- The trend continued in 2022, with the inventory turnover ratio declining further to 2.85, signaling a potential issue with inventory management efficiency.
- However, in 2023, there was a slight improvement in inventory turnover to 3.24, indicating that the company was able to sell and replace its inventory more effectively compared to the previous year.
- By the end of 2024, the inventory turnover ratio significantly increased to 4.13, reflecting an improvement in inventory management efficiency and a higher rate of inventory turnover for B&G Foods Inc.

Overall, fluctuations in the inventory turnover ratio over the five-year period suggest varying levels of efficiency in managing inventory levels and sales. A higher inventory turnover ratio generally indicates better liquidity and efficient management of inventory, while a lower ratio may imply excess inventory or potential difficulties in selling products.