B&G Foods Inc (BGS)

Cash conversion cycle

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Days of inventory on hand (DOH)	days	88.41	112.55	127.97	119.65	106.34
Days of sales outstanding (DSO)	days	34.29	26.84	26.66	26.63	27.65
Number of days of payables	days	19.58	24.49	22.51	25.48	27.31
Cash conversion cycle	days	103.12	114.90	132.11	120.81	106.69

December 31, 2024 calculation

Cash conversion cycle = DOH + DSO – Number of days of payables
= 88.41 + 34.29 – 19.58
= 103.12

The cash conversion cycle of B&G Foods Inc has displayed fluctuations over the past five years. As of December 31, 2020, the company had a cash conversion cycle of 106.69 days, indicating that it took approximately 106.69 days for the company to convert its investments in inventory and other resources back into cash.

By December 31, 2021, the cash conversion cycle had increased to 120.81 days, suggesting a slower turnover of cash within the company's operating cycle. The cycle continued to lengthen, reaching 132.11 days by December 31, 2022, which may imply challenges in managing working capital efficiently.

However, there was a slight improvement in the cash conversion cycle by December 31, 2023, where it decreased to 114.90 days. This reduction could indicate better inventory management or quicker collection of receivables during that period.

The most recent data point, as of December 31, 2024, shows a notable improvement in the cash conversion cycle, dropping to 103.12 days. This reduction suggests that the company may have enhanced its operational efficiency in terms of managing cash flows, inventory, and receivables during that year.

Overall, the fluctuating trend in B&G Foods Inc's cash conversion cycle highlights the importance of closely monitoring working capital management practices to ensure optimal cash flow and operational efficiency.