B&G Foods Inc (BGS)

Inventory turnover

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Cost of revenue	US$ in thousands	1,845,150	2,072,080	1,860,180	1,691,470	1,459,030
Inventory	US$ in thousands	568,980	726,468	609,794	492,804	472,187
Inventory turnover		3.24	2.85	3.05	3.43	3.09

December 31, 2023 calculation

Inventory turnover = Cost of revenue ÷ Inventory
= $1,845,150K ÷ $568,980K
= 3.24

The inventory turnover ratio of B&G Foods Inc has been fluctuating over the past five years. It was 3.24 in 2023, which indicates that the company's inventory was sold and replaced 3.24 times during the year. This was an improvement from 2.85 in 2022 but below the levels seen in 2020 and 2019.

A higher inventory turnover ratio generally indicates that a company is efficiently managing its inventory by selling goods quickly, which can lead to reduced holding costs and potential obsolescence. However, a lower ratio may suggest overstocking, slow-moving inventory, or potential sales issues.

B&G Foods Inc should continue to monitor and analyze its inventory turnover to ensure optimal inventory management and operational efficiency. It's important to understand the reasons behind fluctuations in the ratio and take necessary steps to address any underlying issues that may impact the company's financial performance.