B&G Foods Inc (BGS)
Operating return on assets (Operating ROA)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Operating income | US$ in thousands | 80,419 | 98,628 | 196,079 | 276,438 | 203,836 |
| Total assets | US$ in thousands | 3,463,290 | 3,841,610 | 3,828,540 | 3,767,570 | 3,227,590 |
| Operating ROA | 2.32% | 2.57% | 5.12% | 7.34% | 6.32% |
December 31, 2023 calculation
Operating ROA = Operating income ÷ Total assets
= $80,419K ÷ $3,463,290K
= 2.32%
The operating return on assets (ROA) of B&G Foods Inc has shown a decreasing trend over the past five years. In 2023, the operating ROA was 2.32%, down from 2.57% in 2022, 5.12% in 2021, 7.34% in 2020, and 6.32% in 2019. This trend indicates that the company's ability to generate operating income from its assets has been declining over the years.
The decrease in operating ROA could be attributed to various factors such as rising operating expenses, declining sales growth, or inefficient asset utilization. A lower operating ROA suggests that the company is not effectively generating profits from its assets, which could raise concerns about the company's operational efficiency and profitability.
It is essential for B&G Foods Inc to address the factors leading to the decline in operating ROA and implement strategies to improve asset productivity and profitability in order to enhance its overall financial performance.
Peer comparison
Dec 31, 2023