B&G Foods Inc (BGS)

B&G Foods Inc's solvency ratios indicate its ability to meet its long-term financial obligations. The Debt-to-assets ratio has shown a fluctuating trend over the years, decreasing from 0.62 in 2020 to 0.58 in 2023 before slightly increasing to 0.67 in 2024. This suggests that the company's total debt relative to its assets has been relatively stable, with a slight increase in leverage in 2024.

Similarly, the Debt-to-capital ratio has also shown a consistent pattern, decreasing from 0.74 in 2020 to 0.71 in 2023, before rising to 0.79 in 2024. This ratio indicates the proportion of a company's capital that is financed by debt, with an increase in 2024 indicating higher reliance on debt financing relative to capital.

The Debt-to-equity ratio, reflecting the company's debt relative to shareholders' equity, has displayed a decreasing trend from 2.81 in 2020 to 2.42 in 2023 before a significant jump to 3.84 in 2024. This rising ratio implies a higher level of debt financing compared to equity, possibly signaling increased financial risk.

Lastly, the Financial leverage ratio, which measures the company's debt in relation to its equity, has fluctuated between 4.15 and 5.71 over the years. This ratio indicates the proportion of a company's assets that are financed by debt, with a higher figure indicating higher financial risk due to increased leverage.

Overall, the solvency ratios of B&G Foods Inc highlight a mixed picture with fluctuations in debt levels and leverage over the years. It is important for stakeholders to closely monitor these ratios to assess the company's long-term financial health and risk management strategies.

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Coverage ratios

The interest coverage of B&G Foods Inc has exhibited a declining trend over the years based on the provided data.

As of December 31, 2020, the interest coverage ratio was 51.19, indicating a strong ability to cover interest payments with operating income. However, by December 31, 2024, the interest coverage ratio had deteriorated significantly to -25.69, suggesting that the company's operating income may not be sufficient to cover its interest obligations, raising concerns about its financial health and ability to meet debt obligations.

Overall, the decreasing trend in the interest coverage ratio of B&G Foods Inc over the specified period indicates a potential strain on the company's financial resources and highlights the importance of closely monitoring its financial performance and debt management strategies.