B&G Foods Inc (BGS)
Profitability ratios
Return on sales
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Gross profit margin | 21.86% | 22.18% | 18.93% | 21.32% | 24.55% |
| Operating profit margin | -9.18% | 3.92% | 4.56% | 9.57% | 14.09% |
| Pretax margin | -17.12% | -3.27% | -0.87% | 4.57% | 9.04% |
| Net profit margin | -13.02% | -3.22% | -0.53% | 3.29% | 6.73% |
Based on the provided data, here is a detailed analysis of B&G Foods Inc profitability ratios:
1. Gross Profit Margin:
- The gross profit margin measures the percentage of revenue that exceeds the cost of goods sold.
- B&G Foods Inc's gross profit margin decreased from 24.55% in 2020 to 18.93% in 2022 but then improved to 22.18% in 2023 and 21.86% in 2024.
- The declining trend from 2020 to 2022 indicates potential issues with managing production costs, but the subsequent improvement suggests some corrective measures were taken.
2. Operating Profit Margin:
- The operating profit margin reflects the company's efficiency in generating profit from its core business activities.
- B&G Foods Inc's operating profit margin dropped significantly from 14.09% in 2020 to -9.18% in 2024, indicating operational challenges and possibly higher operating expenses relative to revenue.
- The negative margin in 2024 raises concerns regarding the company's ability to manage operating costs effectively.
3. Pretax Margin:
- The pretax margin shows the company's profitability before accounting for taxes.
- B&G Foods Inc's pretax margin declined from 9.04% in 2020 to -17.12% in 2024.
- The negative pretax margin in 2024 implies significant financial difficulties, potentially driven by a combination of declining profitability and tax burdens.
4. Net Profit Margin:
- The net profit margin reveals the percentage of revenue that translates into net income after all expenses.
- B&G Foods Inc's net profit margin decreased from 6.73% in 2020 to -13.02% in 2024.
- The consistent decline in net profit margin reflects challenges in controlling costs and maintaining profitability, leading to negative returns in the most recent year.
In summary, B&G Foods Inc's profitability ratios have shown a general deterioration over the period analyzed, with declining margins indicating potential operational inefficiencies and financial challenges. The company needs to address these issues to improve profitability and ensure long-term sustainability.
Return on investment
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | -5.92% | 2.32% | 2.57% | 5.12% | 7.34% |
| Return on assets (ROA) | -8.39% | -1.91% | -0.30% | 1.76% | 3.50% |
| Return on total capital | -6.98% | 2.81% | 3.08% | 6.15% | 8.73% |
| Return on equity (ROE) | -47.87% | -7.92% | -1.31% | 7.32% | 15.87% |
Based on the provided data, the profitability ratios of B&G Foods Inc demonstrate a declining trend over the years.
1. Operating Return on Assets (Operating ROA):
- B&G Foods Inc's Operating ROA decreased from 7.34% in 2020 to 2.32% in 2023, indicating a reduction in the company's ability to generate operating profit from its assets. However, in 2024, the Operating ROA turned negative at -5.92%, which is a concerning sign.
2. Return on Assets (ROA):
- The company's ROA declined from 3.50% in 2020 to -8.39% in 2024, suggesting that B&G Foods Inc has been less effective in generating profit relative to its total assets. The negative ROA in 2024 indicates that the company's assets are not generating a positive return.
3. Return on Total Capital:
- B&G Foods Inc's Return on Total Capital decreased from 8.73% in 2020 to -6.98% in 2024, illustrating a consistent decrease in the company's ability to earn a return on its total capital employed. This downward trend suggests challenges in efficiently utilizing its capital resources.
4. Return on Equity (ROE):
- The Return on Equity for B&G Foods Inc plummeted from 15.87% in 2020 to -47.87% in 2024, indicating a significant decrease in the company's profitability in relation to its shareholders' equity. The negative ROE in the last two years suggests that the company is experiencing substantial losses compared to the shareholders' investments.
In conclusion, the profitability ratios of B&G Foods Inc paint a concerning picture of deteriorating financial performance, with declining returns on assets, capital, and equity over the years. This may raise red flags for stakeholders and indicate potential challenges in the company's operations and financial management.