B&G Foods Inc (BGS)

Interest coverage

		Dec 31, 2024	Sep 30, 2024	Jun 30, 2024	Mar 31, 2024	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
Earnings before interest and tax (EBIT) (ttm)	US$ in thousands	-177,277	121,037	-2,715	2,680	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
Interest expense (ttm)	US$ in thousands	119,632	89,296	47,142	9,348	9,354	6,259	6,266	6,260	33,046	53,406	80,017	106,722	106,889	104,628	104,428	102,564	101,634	105,039	102,761	101,091
Interest coverage		-1.48	1.36	-0.06	0.29	8.60	16.78	20.23	16.69	2.98	1.00	1.98	1.78	1.83	2.09	2.42	2.71	2.72	2.65	2.49	2.16

December 31, 2024 calculation

Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $-177,277K ÷ $119,632K
= -1.48

The interest coverage ratio of B&G Foods Inc has shown fluctuations over the reporting periods, indicating varying levels of the company's ability to cover interest payments with its earnings before interest and taxes (EBIT).

From March 31, 2020, to March 31, 2022, the interest coverage remained relatively stable, ranging between 1.78 and 2.72. This suggests the company had a moderate ability to meet its interest obligations over this period.

However, starting from June 30, 2022, until December 31, 2024, the interest coverage ratio experienced significant volatility. The ratio dropped below 1, indicating that the company's EBIT was not sufficient to cover its interest expenses during these quarters. This can raise concerns about the financial health and solvency of B&G Foods Inc.

Notably, there were drastic spikes in interest coverage in March 31, 2023, and June 30, 2023, reaching exceptionally high levels of 16.69 and 20.23, respectively. These spikes could be attributed to certain exceptional or one-time events that significantly boosted EBIT relative to interest expenses during those periods.

Overall, the declining trend in interest coverage from 2022 onwards, along with the periods of instability and occasional spikes, indicates a deteriorating financial position in terms of the company's ability to cover its interest obligations with operating earnings. Investors and stakeholders may consider this trend when evaluating B&G Foods Inc's financial performance and risk profile.