B&G Foods Inc (BGS)

Payables 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
Payables	US$ in thousands	123,778	127,809	129,861	126,537	114,936
Payables turnover		14.91	16.21	14.32	13.37	12.69

December 31, 2023 calculation

Payables turnover = Cost of revenue ÷ Payables
= $1,845,150K ÷ $123,778K
= 14.91

Over the past five years, B&G Foods Inc has shown fluctuations in its payables turnover ratio. The payables turnover ratio measures how efficiently the company manages its accounts payable by calculating how many times the company pays off its suppliers in a given period.

In 2019, the payables turnover ratio was 12.69, indicating that B&G Foods Inc took approximately 12.69 days to pay off its suppliers on average. This ratio improved steadily over the next three years, reaching its peak at 16.21 in 2022, suggesting that the company was managing its payables more efficiently and paying off its suppliers more quickly.

However, in 2023, there was a notable decrease in the payables turnover ratio to 14.91. This decrease could indicate a change in the company's payment policies or a shift in its relationship with suppliers. It may also suggest that the company took longer to pay off its suppliers in 2023 compared to the previous year.

Overall, a higher payables turnover ratio indicates that a company is effectively managing its accounts payable and paying off its suppliers promptly, which can improve relationships with suppliers and help maintain a healthy cash flow. However, it is essential for B&G Foods Inc to closely monitor its payables turnover ratio to ensure efficient management of its working capital and relationships with suppliers going forward.