B&G Foods Inc (BGS)

Working capital turnover

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Revenue	US$ in thousands	2,053,870	2,163,840	2,049,690	1,962,560	1,654,640
Total current assets	US$ in thousands	802,824	1,018,820	834,456	737,301	661,793
Total current liabilities	US$ in thousands	262,418	271,534	244,287	245,652	216,908
Working capital turnover		3.80	2.90	3.47	3.99	3.72

December 31, 2023 calculation

Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $2,053,870K ÷ ($802,824K – $262,418K)
= 3.80

The working capital turnover ratio for B&G Foods Inc has fluctuated over the past five years, ranging from a low of 2.90 in December 2022 to a high of 3.99 in December 2020. The average working capital turnover ratio for the period analyzed is 3.77.

A high working capital turnover ratio indicates that the company efficiently utilizes its working capital to generate sales. This suggests that B&G Foods Inc is effectively managing its inventory, receivables, and payables to support its operating activities.

Although the working capital turnover ratio has varied over the years, it remains relatively stable, indicating consistent efficiency in the company's working capital management. It is essential for B&G Foods Inc to monitor and maintain this ratio to ensure optimal utilization of its working capital resources to support its business operations effectively.