B&G Foods Inc (BGS)

Return on total capital

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Earnings before interest and tax (EBIT)	US$ in thousands	80,419	98,628	196,079	276,438	203,836
Long-term debt	US$ in thousands	2,023,090	2,339,050	2,267,760	2,334,090	1,874,160
Total stockholders’ equity	US$ in thousands	835,463	868,166	920,254	831,877	812,542
Return on total capital		2.81%	3.08%	6.15%	8.73%	7.59%

December 31, 2023 calculation

Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $80,419K ÷ ($2,023,090K + $835,463K)
= 2.81%

The return on total capital for B&G Foods Inc has exhibited a decreasing trend over the past five years. The ratio stood at 7.59% in 2019, subsequently increasing to 8.73% in 2020. However, there was a significant drop to 6.15% in 2021, followed by a further decline to 3.08% in 2022, and ultimately to 2.81% in 2023.

This trend suggests that the company's ability to generate returns on the total capital employed has weakened over the years, potentially indicating less efficient utilization of capital or lower profitability. It may be prudent for stakeholders to assess the underlying factors contributing to this decline and evaluate strategies to improve the return on total capital in order to enhance overall financial performance and shareholder value.