B&G Foods Inc (BGS)
Return on total capital
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | -177,277 | 80,419 | 98,628 | 196,079 | 276,438 |
| Long-term debt | US$ in thousands | 2,014,820 | 2,023,090 | 2,339,050 | 2,267,760 | 2,334,090 |
| Total stockholders’ equity | US$ in thousands | 524,807 | 835,463 | 868,166 | 920,254 | 831,877 |
| Return on total capital | -6.98% | 2.81% | 3.08% | 6.15% | 8.73% |
December 31, 2024 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $-177,277K ÷ ($2,014,820K + $524,807K)
= -6.98%
Based on the data provided, B&G Foods Inc's return on total capital has shown a declining trend over the years. The return on total capital decreased from 8.73% as of December 31, 2020, to 6.15% as of December 31, 2021, and further declined to 3.08% as of December 31, 2022. By December 31, 2023, the return on total capital dropped to 2.81%. Notably, there was a significant negative return on total capital of -6.98% as of December 31, 2024.
This decreasing trend in return on total capital indicates that B&G Foods Inc may be facing challenges in generating returns from its total capital investments. It is essential for the company to assess the factors contributing to this decline and implement strategies to improve its return on total capital in order to enhance overall financial performance and maximize shareholder value.
Peer comparison
Dec 31, 2024