B&G Foods Inc (BGS)

Liquidity ratios

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
Current ratio 3.30 1.64 1.63 3.22 3.06 1.52 3.96 4.06 3.75 3.27 3.27 3.46 3.42 3.11 3.43 3.51 3.00 2.56 3.12 3.69
Quick ratio 1.32 0.41 0.40 0.74 0.73 0.62 0.86 0.16 0.75 0.17 0.15 0.17 0.75 0.09 0.18 0.21 0.21 0.19 0.79 0.61
Cash ratio 0.55 0.10 0.08 0.17 0.16 0.43 0.19 0.16 0.17 0.17 0.15 0.17 0.14 0.09 0.18 0.21 0.21 0.19 0.79 0.61

B&G Foods Inc has shown strong liquidity levels over the past few years based on its liquidity ratios.

The current ratio, which measures the company's ability to cover its short-term obligations with its current assets, has generally been above 2 for most quarters, indicating a healthy liquidity position. The current ratio ranged from a high of 4.06 on March 31, 2023 to a low of 1.52 on September 30, 2023. This suggests that the company has enough current assets to cover its current liabilities, ensuring it can meet its short-term financial obligations comfortably.

The quick ratio, also known as the acid-test ratio, provides a more stringent measure of liquidity by excluding inventory from current assets. B&G Foods Inc's quick ratio has been mixed, fluctuating between a low of 0.09 on September 30, 2021, and a high of 1.32 on December 31, 2024. This indicates that the company may have difficulty meeting its short-term obligations without relying on the sale of inventory in certain quarters.

The cash ratio, which is the most conservative measure of liquidity as it only includes cash and cash equivalents in the calculation, was generally low for B&G Foods Inc. The ratio ranged from a low of 0.08 on June 30, 2024, to a high of 0.61 on March 31, 2020. This suggests that the company may have limited cash reserves available to cover its short-term obligations in some quarters.

Overall, while B&G Foods Inc has maintained a healthy current ratio, the quick ratio and cash ratio indicate that the company may need to closely manage its cash flow and working capital to ensure it can meet its short-term financial commitments consistently.

Additional liquidity measure

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
Cash conversion cycle days 123.82 126.33 112.95 107.98 114.92 112.60 124.61 101.97 132.11 101.95 94.39 88.45 120.80 96.08 87.70 77.86 79.04 64.36 53.96 73.21

The cash conversion cycle of B&G Foods Inc has shown fluctuations over the past few years based on the provided data. The cash conversion cycle indicates the average number of days it takes for a company to convert its investments in inventory and other resources into cash flows from sales.

From March 31, 2020, to December 31, 2024, the cash conversion cycle has fluctuated within a range of 53.96 days to 132.11 days. A lower cash conversion cycle is generally favorable as it suggests that the company is efficient in managing its working capital and can convert its inventory into cash quickly.

B&G Foods Inc experienced the highest cash conversion cycle of 132.11 days on December 31, 2022, indicating a prolonged period to convert its investments into cash flow. Conversely, the lowest cash conversion cycle of 53.96 days was observed on June 30, 2020, reflecting a more efficient management of working capital during that period.

Overall, fluctuations in the cash conversion cycle may be influenced by various factors such as changes in inventory management, accounts receivable collection efficiency, and payment terms with suppliers. It is important for B&G Foods Inc to monitor and optimize its cash conversion cycle to improve liquidity and overall financial performance.