B&G Foods Inc (BGS)
Profitability ratios
Return on sales
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Gross profit margin | 22.18% | 18.93% | 21.32% | 24.55% | 23.15% |
| Operating profit margin | 3.92% | 4.56% | 9.57% | 14.09% | 12.32% |
| Pretax margin | -3.27% | -0.87% | 4.57% | 9.04% | 6.39% |
| Net profit margin | -3.22% | -0.53% | 3.29% | 6.73% | 4.62% |
The profitability ratios of B&G Foods Inc have fluctuated over the past five years. The gross profit margin, which measures the percentage of revenue retained after accounting for the cost of goods sold, has shown some variability but has generally remained above 20% during this period. The operating profit margin, reflecting the company's ability to generate profits from its core operations, has experienced a gradual decline, with a notable drop in 2023.
The pretax margin, indicating the proportion of revenue that translates into pre-tax profits, has shown a negative trend in recent years, with the company experiencing losses in 2023. This suggests that B&G Foods Inc has been facing challenges in controlling operating expenses and non-operating costs.
Similarly, the net profit margin, which represents the percentage of revenue remaining as net income after all expenses have been deducted, has also exhibited a declining trend, falling into negative territory in 2023. This indicates that the company's bottom line profitability has been negatively impacted.
Overall, the profitability ratios of B&G Foods Inc reflect a mixed performance, with fluctuations in gross profit margin and declining trends in operating profit margin, pretax margin, and net profit margin. These trends suggest the company may be facing challenges in managing costs effectively and generating sustainable profits.
Return on investment
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 2.32% | 2.57% | 5.12% | 7.34% | 6.32% |
| Return on assets (ROA) | -1.91% | -0.30% | 1.76% | 3.50% | 2.37% |
| Return on total capital | 2.81% | 3.08% | 6.15% | 8.73% | 7.59% |
| Return on equity (ROE) | -7.92% | -1.31% | 7.32% | 15.87% | 9.40% |
1. Operating Return on Assets (Operating ROA):
- B&G Foods Inc's Operating ROA has shown a decreasing trend over the past five years, from 6.32% in 2019 to 2.32% in 2023. This suggests that the company's ability to generate operating income from its assets has weakened over time.
2. Return on Assets (ROA):
- The ROA for B&G Foods Inc has been negative in the most recent years, indicating that the company is not effectively using its assets to generate profits. It is concerning to see a decline from 3.50% in 2020 to -1.91% in 2023.
3. Return on Total Capital:
- B&G Foods Inc's Return on Total Capital has also experienced a downward trend, declining from 7.59% in 2019 to 2.81% in 2023. This suggests that the company's efficiency in generating returns from its total capital has deteriorated over the years.
4. Return on Equity (ROE):
- The Return on Equity for B&G Foods Inc has been negative in recent years, indicating that the company is not effectively utilizing shareholder equity to generate returns. The substantial decrease from 15.87% in 2020 to -7.92% in 2023 raises concerns about the company's profitability and financial performance.
Overall, based on the profitability ratios, it is evident that B&G Foods Inc has been experiencing declining profitability trends, potentially indicating challenges in effectively leveraging its assets, capital, and equity to generate sustainable returns. Management should thoroughly analyze the underlying factors contributing to these trends and implement strategic measures to improve profitability and financial performance in the future.