B&G Foods Inc (BGS)

Return on equity (ROE)

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Net income	US$ in thousands	-66,198	-11,370	67,363	131,988	76,389
Total stockholders’ equity	US$ in thousands	835,463	868,166	920,254	831,877	812,542
ROE		-7.92%	-1.31%	7.32%	15.87%	9.40%

December 31, 2023 calculation

ROE = Net income ÷ Total stockholders’ equity
= $-66,198K ÷ $835,463K
= -7.92%

The return on equity (ROE) of B&G Foods Inc has shown a declining trend over the past five years. The ROE was 9.40% in 2019, reached its peak at 15.87% in 2020, but has been decreasing since then, standing at 7.32% in 2021, further dropping to -1.31% in 2022, and falling to -7.92% in 2023.

A negative ROE indicates that the company's net income is not sufficient to cover its shareholders' equity, suggesting potential financial challenges or inefficiencies in the company's operations. This trend may be a cause for concern among investors and stakeholders as it implies decreasing profitability and declining returns on their investments.

B&G Foods Inc would need to assess the reasons behind this negative trend in ROE, such as declining profitability, inefficient use of assets, increasing debt levels, or other internal or external factors impacting its financial performance. Implementing strategies to improve profitability, enhance operational efficiency, optimize asset utilization, and manage debt levels could help turn around the declining ROE and restore investor confidence in the company's financial health and performance.