B&G Foods Inc (BGS)

Debt-to-capital ratio

		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
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
Debt-to-capital ratio		0.71	0.70	0.72	0.73	0.73	0.74	0.71	0.71	0.71	0.74	0.73	0.73	0.74	0.68	0.70	0.71	0.70	0.72	0.67	0.65

December 31, 2023 calculation

Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $2,023,090K ÷ ($2,023,090K + $835,463K)
= 0.71

The debt-to-capital ratio of B&G Foods Inc has shown some stability over the past few quarters, ranging between 0.65 to 0.74. This ratio indicates the proportion of the company's capital structure that is funded by debt. A higher ratio suggests a higher level of debt relative to total capital, while a lower ratio indicates less reliance on debt financing.

Based on the data provided, B&G Foods Inc maintained a relatively moderate debt-to-capital ratio throughout the period, with the highest ratio of 0.74 seen in several quarters. This indicates that the company has been using a significant portion of debt in its capital structure. However, the ratio has not exceeded 0.74, suggesting that the company has managed its debt levels within a reasonable range.

It is important to note that while debt can provide financial leverage and tax benefits, high levels of debt can also increase financial risk and interest expenses. Therefore, B&G Foods Inc should continue to monitor its debt levels and ensure they are sustainable given its financial performance and market conditions.