B&G Foods Inc (BGS)

Return on total capital

		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	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Earnings before interest and tax (EBIT) (ttm)	US$ in thousands	80,419	105,042	126,737	104,485	98,628	53,580	158,250	190,424	196,079	218,261	252,297	278,197	276,438	278,326	256,370	218,765	203,836	332,906	337,384	329,266
Long-term debt	US$ in thousands	2,023,090	1,929,140	2,245,630	2,281,460	2,339,050	2,418,090	2,292,140	2,281,200	2,267,760	2,406,830	2,325,910	2,329,990	2,334,090	1,804,590	1,874,440	1,974,860	1,874,160	2,133,490	1,802,630	1,636,750
Total stockholders’ equity	US$ in thousands	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	812,542	843,415	868,360	877,119
Return on total capital		2.81%	3.79%	4.07%	3.32%	3.08%	1.64%	4.90%	5.96%	6.15%	6.74%	7.97%	8.77%	8.73%	10.51%	9.52%	7.89%	7.59%	11.18%	12.63%	13.10%

December 31, 2023 calculation

Return on total capital = EBIT (ttm) ÷ (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 shown fluctuations over the past few quarters, ranging from a low of 1.64% in September 2022 to a high of 13.10% in June 2019. The company's return on total capital indicates how effectively it is utilizing its capital to generate profits.

A return on total capital below 5% may suggest inefficiency in capital utilization, while a return above 10% is generally considered strong. B&G Foods Inc's return on total capital has mostly hovered in the range of 3% to 9% in recent quarters, with occasional spikes above this range.

It is important for investors and stakeholders to monitor changes in return on total capital as it reflects the company's ability to generate profits relative to the total capital employed. Factors influencing this ratio may include the company's operational efficiency, profitability, and the cost of capital. Further analysis and comparison with industry peers can provide deeper insights into B&G Foods Inc's financial performance and competitiveness.