B&G Foods Inc (BGS)

Payables turnover

		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	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Cost of revenue (ttm)	US$ in thousands	1,792,961	1,951,073	1,955,010	1,986,485	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	1,458,444	1,494,210	1,506,023	1,531,322
Payables	US$ in thousands	123,778	182,191	136,308	131,316	127,809	228,248	164,118	152,309	129,861	202,675	119,578	125,165	126,537	185,362	122,887	102,629	114,936	177,115	113,536	126,208
Payables turnover		14.49	10.71	14.34	15.13	16.21	9.05	11.86	12.48	14.32	8.77	14.41	13.95	13.37	8.90	12.88	14.41	12.69	8.44	13.26	12.13

December 31, 2023 calculation

Payables turnover = Cost of revenue (ttm) ÷ Payables
= $1,792,961K ÷ $123,778K
= 14.49

The payables turnover ratio measures how efficiently a company manages its accounts payable by comparing the purchases made on credit to the average accounts payable for a period. A higher turnover ratio indicates that the company is paying its suppliers more frequently, which can be a sign of favorable liquidity and strong supplier relationships.

Analyzing B&G Foods Inc's payables turnover over the past few quarters, we see fluctuations in the ratio. The ratio ranges from a low of 8.44 to a high of 16.21. In general, B&G Foods Inc appears to have a relatively high payables turnover, suggesting that the company is managing its accounts payable effectively.

For investors and analysts, a consistently high payables turnover can be viewed positively as it indicates that the company has good working capital management practices and is possibly negotiating favorable credit terms with suppliers. However, a significant decrease in the ratio over time could indicate potential liquidity issues or changes in payment policies.

Overall, the trend of B&G Foods Inc's payables turnover ratio indicates a relatively stable and efficient management of its accounts payable, contributing to its overall financial health and operational efficiency.