B&G Foods Inc (BGS)
Return on assets (ROA)
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | -251,251 | -66,198 | -11,370 | 67,363 | 131,988 |
| Total assets | US$ in thousands | 2,994,050 | 3,463,290 | 3,841,610 | 3,828,540 | 3,767,570 |
| ROA | -8.39% | -1.91% | -0.30% | 1.76% | 3.50% |
December 31, 2024 calculation
ROA = Net income ÷ Total assets
= $-251,251K ÷ $2,994,050K
= -8.39%
The return on assets (ROA) for B&G Foods Inc has fluctuated over the years, indicating varying levels of efficiency in generating profits from its assets.
In December 31, 2020, the ROA was 3.50%, demonstrating that the company was effectively utilizing its assets to generate a positive return. However, there was a decline in ROA to 1.76% by December 31, 2021, suggesting a decrease in profitability relative to its asset base.
The trend continued with a further decline in ROA to -0.30% by December 31, 2022, indicating a situation where the company's net income was insufficient to cover the costs associated with its assets. This negative trend worsened in the subsequent years, as the ROA fell to -1.91% by December 31, 2023, and significantly dropped to -8.39% by December 31, 2024.
Overall, the declining ROA over the years highlights potential inefficiencies in managing assets and generating profits for B&G Foods Inc. It is crucial for the company to closely monitor and improve its asset utilization to enhance overall profitability and financial performance.
Peer comparison
Dec 31, 2024