B&G Foods Inc (BGS)

Financial leverage ratio

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Total assets	US$ in thousands	3,463,290	3,841,610	3,828,540	3,767,570	3,227,590
Total stockholders’ equity	US$ in thousands	835,463	868,166	920,254	831,877	812,542
Financial leverage ratio		4.15	4.42	4.16	4.53	3.97

December 31, 2023 calculation

Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $3,463,290K ÷ $835,463K
= 4.15

The financial leverage ratio measures the extent to which a company is utilizing debt to finance its operations and investments. B&G Foods Inc's financial leverage ratio has shown some fluctuation over the past five years, ranging from 3.97 to 4.53, with the most recent ratio being 4.15 as of December 31, 2023.

A high financial leverage ratio indicates that a significant portion of the company's assets are financed through debt, which can potentially lead to higher financial risk due to interest payments and debt obligations. On the other hand, a low financial leverage ratio may signify a more conservative capital structure with a smaller reliance on debt for funding.

The decreasing trend in the financial leverage ratio from 4.53 in 2020 to 4.15 in 2023 suggests that B&G Foods Inc may have made efforts to reduce its reliance on debt financing over the years. This could be a strategic move to lower the company's financial risk and improve its financial stability.

Overall, a financial leverage ratio of 4.15 indicates that B&G Foods Inc has a relatively high level of debt in its capital structure, which warrants cautious monitoring of the company's ability to meet its debt obligations and manage its financial risk effectively.