B&G Foods Inc (BGS)

Working capital turnover

		Dec 31, 2024	Sep 30, 2024	Jun 30, 2024	Mar 31, 2024	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
Revenue (ttm)	US$ in thousands	1,932,256	1,949,320	1,990,969	2,016,002	2,052,587	2,101,145	2,126,800	2,136,134	2,163,842	2,112,055	2,098,643	2,084,061	2,049,689	1,989,304	1,970,098	2,018,262	1,962,498	1,927,840	1,838,392	1,697,050
Total current assets	US$ in thousands	781,444	882,507	796,576	785,321	802,824	1,280,710	914,556	936,846	1,018,820	1,149,420	916,760	859,872	834,456	932,778	750,191	729,396	737,301	752,621	717,849	771,722
Total current liabilities	US$ in thousands	236,865	537,632	489,972	244,235	262,418	842,928	231,181	230,684	271,534	351,049	280,064	248,344	244,287	299,461	218,414	207,573	245,652	294,265	229,886	209,299
Working capital turnover		3.55	5.65	6.49	3.73	3.80	4.80	3.11	3.02	2.90	2.65	3.30	3.41	3.47	3.14	3.70	3.87	3.99	4.21	3.77	3.02

December 31, 2024 calculation

Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $1,932,256K ÷ ($781,444K – $236,865K)
= 3.55

B&G Foods Inc's working capital turnover has shown some fluctuations over the past years. From March 31, 2020, to June 30, 2021, the turnover ratio increased steadily from 3.02 to 3.70 before reaching a peak of 4.21 on September 30, 2020. This suggests an improvement in the company's efficiency in utilizing its working capital to generate sales during this period.

However, from September 30, 2021, to December 31, 2024, the working capital turnover ratio experienced more variability. The ratio fluctuated between 2.65 and 6.49, indicating some instability in the company's working capital management efficiency. The significant spike to 6.49 on June 30, 2024, followed by a decline to 3.55 on December 31, 2024, may reflect changes in the company's working capital utilization or sales patterns.

Overall, while the working capital turnover ratio for B&G Foods Inc has shown some fluctuations, it is important for the company to consistently monitor and manage its working capital efficiently to ensure optimal utilization and support sustainable growth in sales over time.