B&G Foods Inc (BGS)
Return on equity (ROE)
| 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 stockholders’ equity | US$ in thousands | 524,807 | 835,463 | 868,166 | 920,254 | 831,877 |
| ROE | -47.87% | -7.92% | -1.31% | 7.32% | 15.87% |
December 31, 2024 calculation
ROE = Net income ÷ Total stockholders’ equity
= $-251,251K ÷ $524,807K
= -47.87%
The return on equity (ROE) of B&G Foods Inc has shown a declining trend over the years from December 31, 2020, to December 31, 2024. In 2020, the ROE stood at 15.87%, indicating a healthy return generated for shareholders' equity. However, this figure decreased significantly to 7.32% by the end of 2021, showing a drop in the profitability of the company relative to its equity.
By December 31, 2022, the ROE turned negative at -1.31%, suggesting that the company had incurred losses impacting the profitability generated on shareholders' equity. The downward trend continued with ROE plunging further to -7.92% by the end of 2023, indicating continued challenges in generating profits relative to shareholders' investments.
The most substantial decline was observed in 2024, with ROE plummeting to -47.87%. This sharp decrease signifies significant losses incurred by the company relative to its equity base, indicating potential financial distress or operational inefficiencies impacting the returns to shareholders.
In summary, B&G Foods Inc's ROE has experienced a noteworthy decline over the years, raising concerns about the company's profitability and its ability to generate returns for its shareholders. Further analysis of the company's financial performance and strategy is necessary to address the declining trend in ROE and determine the underlying factors contributing to the decreasing profitability.
Peer comparison
Dec 31, 2024