B&G Foods Inc (BGS)

B&G Foods Inc's liquidity ratios indicate the company's ability to meet its short-term obligations. The current ratio, which measures current assets relative to current liabilities, has exhibited some fluctuation over the past five years, ranging from 3.00 to 3.75. A current ratio above 1 indicates that the company has more current assets than current liabilities, suggesting a strong liquidity position. B&G Foods Inc's current ratio has consistently been above 3 in recent years, signaling a robust ability to cover its short-term obligations.

The quick ratio, which is a more stringent measure of liquidity, factors in only the most liquid assets (such as cash, marketable securities, and accounts receivable) compared to current liabilities. B&G Foods Inc's quick ratio has also shown stability, ranging from 0.73 to 0.82 over the same period. While a quick ratio above 1 is generally preferred, the company's quick ratio has remained relatively consistent, indicating sufficient liquidity to cover immediate liabilities without relying on inventory.

The cash ratio, which focuses solely on cash and cash equivalents relative to current liabilities, provides a more conservative view of liquidity. B&G Foods Inc's cash ratio has varied from 0.05 to 0.21, with a notable increase in 2020. While the cash ratio has fluctuated more compared to the current and quick ratios, the values have generally been above 0.10, demonstrating that the company maintains a sufficient level of cash to meet its short-term obligations.

Overall, B&G Foods Inc's liquidity ratios suggest a strong liquidity position, with consistent current and quick ratios above 3 and stable cash ratios above 0.10 in recent years. This indicates that the company has ample liquid assets to cover its short-term liabilities, which bodes well for its financial health and ability to navigate potential liquidity challenges.

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Additional liquidity measure

The cash conversion cycle of B&G Foods Inc has fluctuated over the past five years, indicating changes in the efficiency of its cash management and operating cycle.

In 2023, the cash conversion cycle decreased compared to the previous year, reaching 114.90 days. This suggests that the company was able to improve its cash management efficiency and convert its resources into cash faster.

However, in 2022, the cash conversion cycle increased to 132.11 days, reflecting a slowdown in the company's cash conversion process compared to 2021 when it was at 120.81 days. This could indicate potential issues with inventory turnover, accounts receivable collection, or accounts payable management during that period.

The year 2020 saw a relatively lower cash conversion cycle of 106.69 days, indicating improved efficiency in converting resources into cash compared to 2019 when it stood at 123.09 days. This suggests that the company was more effective in managing its working capital and optimizing its cash flow during that period.

Overall, fluctuations in the cash conversion cycle of B&G Foods Inc over the past five years indicate variations in the efficiency of its working capital management and cash flow operations. Further analysis and investigation into the underlying factors driving these changes would provide deeper insights into the company's financial performance and operational effectiveness.