B&G Foods Inc (BGS)

Short-term

Turnover ratios

Based on the provided data, let's analyze the activity ratios of B&G Foods Inc:

1. Inventory Turnover: The inventory turnover ratio measures how efficiently a company manages its inventory by showing how many times the company's inventory is sold and replaced over a specific period. B&G Foods Inc's inventory turnover fluctuated over the periods, ranging from a low of 2.57 to a high of 4.43. A decreasing trend in inventory turnover may indicate issues with sales or excess inventory.

2. Receivables Turnover: Receivables turnover ratio assesses how quickly a company collects its accounts receivable. B&G Foods Inc started reporting receivables turnover from December 31, 2021, showing an increasing trend until December 31, 2024. Higher receivables turnover suggests efficient credit management and timely collection of outstanding payments.

3. Payables Turnover: Payables turnover ratio measures how efficiently a company pays its suppliers and manages its accounts payable. B&G Foods Inc's payables turnover varied over the periods, with a range from 8.77 to 16.21. A higher payables turnover ratio may indicate that the company is efficiently managing its payables and may negotiate favorable credit terms with suppliers.

4. Working Capital Turnover: The working capital turnover ratio demonstrates how effectively a company utilizes its working capital to generate sales over a specific period. B&G Foods Inc's working capital turnover ratio fluctuated during the periods, ranging from 2.65 to 6.49. A higher working capital turnover ratio suggests efficient utilization of working capital in generating sales revenue.

In summary, B&G Foods Inc's activity ratios show fluctuations over the periods, indicating changes in inventory management, receivables collection efficiency, payables management, and working capital utilization. Further analysis and comparison with industry benchmarks may provide additional insights into the company's operational efficiency and financial performance.

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Average number of days

B&G Foods Inc's Days of Inventory on Hand (DOH) has shown some fluctuations over the past years. The company's inventory turnover cycle ranged from around 98 to 142 days, indicating the average number of days it takes for the company to sell its inventory. A decreasing trend in DOH is generally favorable as it suggests more efficient inventory management. B&G Foods Inc may need to evaluate its inventory holding policies to optimize working capital utilization.

Regarding Days of Sales Outstanding (DSO), the company had no data reported until December 31, 2021, where it was around 26.63 days. DSO represents how long it takes for the company to collect payments from its customers. Lower DSO values are desirable as they indicate a shorter collection period and better liquidity. B&G Foods Inc's DSO has shown some fluctuation but generally improved over time post-2021, indicating better receivables management.

In terms of Number of Days of Payables, B&G Foods Inc has seen fluctuations in its payables turnover cycle, ranging from approximately 22 to 40 days. A longer payables period can indicate favorable cash flow management but may also suggest strained supplier relationships if excessive. Closer monitoring of payables turnover is essential to ensure a balance between cash flow optimization and maintaining good vendor relations.

Overall, B&G Foods Inc's activity ratios suggest areas for improvement in managing inventory levels, receivables collection, and payables turnover to enhance operational efficiency and working capital management. Vigilant monitoring and adjustment of these ratios can help the company optimize its cash conversion cycle and financial performance.

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Long-term

The fixed asset turnover ratio for B&G Foods Inc has shown a generally increasing trend from March 31, 2020, to December 31, 2024, with values ranging from 5.28 to 7.00. This indicates improvement in the company's efficiency in generating sales revenue from its fixed assets over this period.

On the other hand, the total asset turnover ratio fluctuated within a relatively narrow range from 0.50 to 0.65 during the same period, with a slight increasing trend observed towards the end of 2024. This ratio measures the company's ability to generate sales from all its assets, both fixed and current.

Overall, the increasing trend in fixed asset turnover suggests that B&G Foods Inc has been utilizing its fixed assets more efficiently over time, while the total asset turnover ratio indicates a stable performance in generating sales from all its assets. This combination of ratios reflects a positive trend in asset utilization and efficiency in revenue generation for the company.