B&G Foods Inc (BGS)

Return on equity (ROE)

		Dec 31, 2024	Sep 30, 2024	Jun 30, 2024	Mar 31, 2024	Dec 31, 2023	Sep 30, 2023	Jun 30, 2023	Mar 31, 2023	Dec 31, 2022	Sep 30, 2022	Jun 30, 2022	Mar 31, 2022	Dec 31, 2021	Sep 30, 2021	Jun 30, 2021	Mar 31, 2021	Dec 31, 2020	Sep 30, 2020	Jun 30, 2020	Mar 31, 2020
Net income (ttm)	US$ in thousands	-251,251	-26,262	-116,467	-109,852	-66,198	-44,472	-21,314	-31,611	-11,370	-40,484	39,846	64,141	67,363	84,348	110,414	130,774	131,988	130,075	114,350	87,690
Total stockholders’ equity	US$ in thousands	524,807	755,307	765,011	781,220	835,463	840,639	866,363	861,819	868,166	841,574	940,181	913,966	920,254	830,622	841,605	840,614	831,877	843,376	817,149	796,287
ROE		-47.87%	-3.48%	-15.22%	-14.06%	-7.92%	-5.29%	-2.46%	-3.67%	-1.31%	-4.81%	4.24%	7.02%	7.32%	10.15%	13.12%	15.56%	15.87%	15.42%	13.99%	11.01%

December 31, 2024 calculation

ROE = Net income (ttm) ÷ Total stockholders’ equity
= $-251,251K ÷ $524,807K
= -47.87%

The return on equity (ROE) is a key financial ratio that measures a company's profitability by evaluating how effectively it generates profit from its shareholders' equity.

Analyzing the data provided, we observe that B&G Foods Inc.'s ROE has fluctuated over the given time period. The ROE increased steadily from March 31, 2020, to December 31, 2021, reaching a peak of 15.87% in December 2020. This upward trend indicates that the company was efficiently utilizing its equity to generate profit during this period.

However, starting from March 31, 2022, the ROE began to decline significantly. The trend continued to deteriorate, with negative ROE figures recorded from September 30, 2022, onwards. The ROE continued to decrease substantially, reaching a low of -47.87% by December 31, 2024.

The negative ROE figures from September 30, 2022, to December 31, 2024, suggest that the company was experiencing financial challenges and facing difficulty in generating profit from its shareholder equity. A negative ROE indicates that the company's shareholder equity was not effectively contributing to profitability.

In conclusion, the fluctuating trend in B&G Foods Inc.'s ROE signifies varying levels of profitability and efficiency in utilizing shareholder equity. The significant decline in ROE from March 31, 2022, onwards raises concerns about the company's financial performance and the need for further investigation into the underlying factors contributing to these negative returns.