B&G Foods Inc (BGS)

Interest coverage

		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
Earnings before interest and tax (EBIT) (ttm)	US$ in thousands	80,419	105,042	126,737	104,485	98,628	53,580	158,250	190,424	196,079	218,261	252,297	278,197	276,438	278,326	256,370	218,765	203,836	332,906	337,384	329,266
Interest expense (ttm)	US$ in thousands	48,773	45,678	45,685	45,679	33,046	53,406	80,017	106,722	106,889	104,628	104,428	102,564	101,634	105,039	102,761	101,091	98,126	94,894	98,674	103,102
Interest coverage		1.65	2.30	2.77	2.29	2.98	1.00	1.98	1.78	1.83	2.09	2.42	2.71	2.72	2.65	2.49	2.16	2.08	3.51	3.42	3.19

December 31, 2023 calculation

Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $80,419K ÷ $48,773K
= 1.65

The interest coverage ratio for B&G Foods Inc over the past several quarters has varied significantly. The ratio measures the company's ability to meet its interest payments on outstanding debt obligations through its operating earnings. A higher interest coverage ratio indicates a stronger ability to cover interest expenses.

Looking at the data provided, the interest coverage ratio ranged from a low of 1.00 in the third quarter of 2022 to a high of 3.51 in the fourth quarter of 2019. In more recent quarters, the interest coverage ratio has shown some improvement, with values consistently above 2.00 since the first quarter of 2021.

The increase in the interest coverage ratio from the third quarter of 2020 onwards suggests that B&G Foods Inc has been more effective in generating operating income to cover its interest expenses. However, the ratio experienced fluctuations, indicating that the company may still face some variability in its ability to cover interest payments.

It is important for investors and stakeholders to monitor the interest coverage ratio over time to assess the company's financial health and ability to meet its debt obligations. Overall, while the recent trend shows improvement, continued stability and growth in the interest coverage ratio would be a positive indicator for B&G Foods Inc's financial strength.