B&G Foods Inc (BGS)
Solvency ratios
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.58 | 0.61 | 0.59 | 0.62 | 0.58 |
| Debt-to-capital ratio | 0.71 | 0.73 | 0.71 | 0.74 | 0.70 |
| Debt-to-equity ratio | 2.42 | 2.69 | 2.46 | 2.81 | 2.31 |
| Financial leverage ratio | 4.15 | 4.42 | 4.16 | 4.53 | 3.97 |
B&G Foods Inc's solvency ratios indicate how the company is financed and its ability to meet long-term obligations.
1. Debt-to-assets ratio: This ratio measures the proportion of total assets financed by debt. From 2019 to 2023, the ratio fluctuated between 0.58 and 0.62. A lower ratio indicates a lower reliance on debt for asset financing.
2. Debt-to-capital ratio: This ratio shows the percentage of capital that comes from debt. The company's ratio ranged from 0.70 to 0.74 during the period. A lower ratio indicates a higher proportion of capital coming from equity.
3. Debt-to-equity ratio: This ratio reflects the company's financial leverage and risk. B&G Foods Inc's ratio varied from 2.31 to 2.81, indicating a high level of debt relative to equity, which can pose a higher risk in times of financial distress.
4. Financial leverage ratio: This ratio calculates the extent to which the company uses debt to finance its operations. The ratio rose from 3.97 in 2019 to 4.42 in 2022, before declining to 4.15 in 2023. A higher ratio suggests higher financial risk due to increased debt usage.
Overall, B&G Foods Inc's solvency ratios indicate a consistent reliance on debt financing, particularly evident in the debt-to-equity ratio. The company's financial leverage has shown some fluctuation, implying varying levels of risk over the years. Investors and analysts would closely monitor these ratios to assess the company's financial health and its ability to manage debt obligations.
Coverage ratios
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Interest coverage | 8.60 | 15.80 | 33.81 | 51.19 | 44.31 |
The interest coverage ratio measures a company's ability to cover its interest expenses with its operating income. A higher interest coverage ratio indicates a company is more capable of meeting its interest obligations.
Over the past five years, B&G Foods Inc's interest coverage ratio has experienced a declining trend. The ratio decreased from 44.31 in 2019 to 8.60 in 2023. This declining trend suggests that the company's ability to cover its interest expenses with its operating income has weakened.
In 2023, the interest coverage ratio of 8.60 indicates that B&G Foods Inc's operating income is 8.60 times higher than its interest expenses for the year. While the ratio is above 1, implying the company can still cover its interest expenses, the decreasing trend warrants further investigation into the company's financial health and ability to meet its debt obligations.