B&G Foods Inc (BGS)

Payables 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
Payables US$ in thousands 113,209 123,778 127,809 129,861 126,537
Payables turnover 18.64 14.91 16.21 14.32 13.37

December 31, 2024 calculation

Payables turnover = Cost of revenue ÷ Payables
= $2,110,610K ÷ $113,209K
= 18.64

The payables turnover ratio of B&G Foods Inc has shown an increasing trend over the years, indicating the company's efficiency in managing its accounts payable. The ratio has progressed from 13.37 in 2020 to 18.64 in 2024. This suggests that B&G Foods Inc is taking fewer days, on average, to pay its suppliers, which can positively impact its working capital management and cash flow. A higher payables turnover ratio signifies a shorter payment period to suppliers, which may reflect strong vendor relationships and effective cash flow management strategies within the company.