B&G Foods Inc (BGS)

Inventory turnover

		Dec 31, 2024	Sep 30, 2024	Jun 30, 2024	Mar 31, 2024	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
Cost of revenue (ttm)	US$ in thousands	1,622,047	1,701,225	1,866,640	1,886,293	1,845,195	2,003,307	2,007,244	2,038,719	2,072,089	2,065,464	1,947,126	1,900,213	1,860,186	1,776,455	1,723,213	1,745,476	1,691,450	1,649,758	1,582,266	1,478,529
Inventory	US$ in thousands	511,232	618,093	559,594	560,589	568,980	644,060	674,682	700,882	726,468	805,188	667,668	612,768	609,794	670,305	533,631	497,481	492,804	476,275	356,803	399,189
Inventory turnover		3.17	2.75	3.34	3.36	3.24	3.11	2.98	2.91	2.85	2.57	2.92	3.10	3.05	2.65	3.23	3.51	3.43	3.46	4.43	3.70

December 31, 2024 calculation

Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $1,622,047K ÷ $511,232K
= 3.17

Inventory turnover is a key financial ratio that measures how efficiently a company manages its inventory by evaluating the number of times inventory is sold and replaced within a specific period. For B&G Foods Inc, the inventory turnover ratio fluctuated over the analyzed period from March 31, 2020, to December 31, 2024.

The inventory turnover ratio started at 3.70 on March 31, 2020, and demonstrated some volatility over the subsequent quarters. It peaked at 4.43 on June 30, 2020, and then gradually decreased to 2.57 by September 30, 2022. This lower ratio indicates that the company was holding onto its inventory for a longer period, which may suggest inefficiencies in managing inventory levels or potential issues with demand forecasting.

However, B&G Foods Inc showed some improvement in controlling its inventory towards the end of the period. The inventory turnover ratio increased to 3.36 on March 31, 2024, suggesting that the company was able to sell and replace its inventory more frequently. This improvement indicates better inventory management, potentially reducing holding costs and minimizing the risk of obsolete inventory.

Overall, the trend in B&G Foods Inc's inventory turnover ratio highlights fluctuations in inventory management efficiency over the analyzed period. It is important for the company to continue monitoring and optimizing its inventory turnover to ensure effective working capital management and operational performance.