B&G Foods Inc (BGS)
Interest coverage
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | -177,277 | 80,419 | 98,628 | 196,079 | 276,438 |
| Interest expense | US$ in thousands | 6,900 | 9,354 | 6,244 | 5,800 | 5,400 |
| Interest coverage | -25.69 | 8.60 | 15.80 | 33.81 | 51.19 |
December 31, 2024 calculation
Interest coverage = EBIT ÷ Interest expense
= $-177,277K ÷ $6,900K
= -25.69
Based on the provided data, the interest coverage ratio for B&G Foods Inc has demonstrated a declining trend over the years. As of December 31, 2020, the interest coverage ratio was 51.19, indicating a strong ability to cover interest expenses. However, this ratio declined to 33.81 by December 31, 2021, and further decreased to 15.80 by December 31, 2022. The declining trend continued, with the interest coverage ratio dropping to 8.60 by December 31, 2023.
Moreover, the interest coverage ratio turned negative, reaching -25.69 as of December 31, 2024, which suggests that the company's operating income was insufficient to cover its interest expenses during that period. This significant drop in the interest coverage ratio raises concerns about the company's financial health and its ability to meet its interest obligations comfortably.
Overall, the declining trend in the interest coverage ratio indicates a potential strain on B&G Foods Inc's financial position and highlights the importance of monitoring the company's ability to generate sufficient earnings to cover its interest payments in the future.
Peer comparison
Dec 31, 2024