B&G Foods Inc (BGS)

Cash conversion cycle

		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	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Days of inventory on hand (DOH)	days	115.83	120.49	125.96	128.78	127.97	142.29	125.16	117.70	119.65	137.72	113.03	104.03	106.34	105.37	82.31	98.55	118.17	128.51	98.10	89.48
Days of sales outstanding (DSO)	days	26.85	28.45	26.71	—	26.66	—	—	—	26.63	—	—	—	—	—	—	—	—	—	—	—
Number of days of payables	days	25.20	34.08	25.45	24.13	22.51	40.34	30.76	29.26	25.48	41.64	25.33	26.17	27.31	41.01	28.35	25.34	28.76	43.26	27.52	30.08
Cash conversion cycle	days	117.48	114.86	127.23	104.65	132.11	101.95	94.39	88.45	120.80	96.08	87.70	77.86	79.04	64.36	53.96	73.21	89.41	85.24	70.58	59.39

December 31, 2023 calculation

Cash conversion cycle = DOH + DSO – Number of days of payables
= 115.83 + 26.85 – 25.20
= 117.48

The cash conversion cycle of B&G Foods Inc has shown fluctuations over the past few quarters. The cycle measures how long it takes for the company to convert its investments in inventory into cash flows from sales. A shorter cash conversion cycle indicates that the company is able to efficiently manage its working capital and convert inventory into cash quickly.

From the data provided, we observe that the cash conversion cycle ranged from a low of 53.96 days in June 2020 to a high of 132.11 days in December 2022. This variability suggests that B&G Foods Inc's efficiency in managing its working capital and inventory turnover has been inconsistent.

The company's cash conversion cycle has been above 100 days in several quarters, which may indicate inefficiencies in managing inventory or extending credit to customers. However, there are also quarters where the cycle has been relatively lower, showing improvement in working capital management.

Overall, it is important for B&G Foods Inc to closely monitor and improve its cash conversion cycle to ensure optimal working capital management and efficiency in converting inventory investment into cash flows.