B&G Foods Inc (BGS)

Financial leverage 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
Total assets	US$ in thousands	3,463,290	3,956,850	3,718,710	3,752,440	3,841,610	3,983,570	3,916,920	3,839,350	3,828,540	3,946,140	3,761,420	3,741,200	3,767,570	3,278,900	3,251,820	3,318,780	3,227,590	3,572,260	3,171,770	3,074,180
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
Financial leverage ratio		4.15	4.71	4.29	4.35	4.42	4.73	4.17	4.20	4.16	4.75	4.47	4.45	4.53	3.89	3.98	4.17	3.97	4.24	3.65	3.50

December 31, 2023 calculation

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

The financial leverage ratio measures a company's use of debt to finance its operations and growth. A higher financial leverage ratio indicates a higher level of debt relative to equity, implying higher financial risk.

Based on the data provided for B&G Foods Inc over the past 20 quarters, the financial leverage ratio has fluctuated between 3.50 and 4.75. The trend shows some variability but generally indicates that the company has maintained a relatively high level of debt compared to equity throughout the period.

Notably, the ratio peaked at 4.75 in the third quarter of 2021, indicating a higher reliance on debt at that point in time. However, it dipped to its lowest point of 3.50 in the third quarter of 2019, suggesting a lower level of debt relative to equity at that time. Overall, the company's financial leverage ratio has shown some volatility but generally remains above 4.00, signifying a significant reliance on debt in its capital structure.

Investors and analysts may view the company's consistent high financial leverage ratio as a potential cause for concern due to the increased financial risk that comes with higher debt levels. Monitoring the trend of this ratio over time can provide insights into the company's capital structure decisions and risk management practices.