Benzinga | Jun 1, 2021 03:15PM EDT

B&G Foods: Return On Capital Employed Insights

B&G Foods: Return On Capital Employed InsightsLooking at Q1, B&G Foods (NYSE:BGS) earned $61.98 million, a 43.12% increase from the preceding quarter. B&G Foods's sales decreased to $505.13 million, a 1.0%B&G Foods: Return On Capital Employed Insights

Looking at Q1, B&G Foods (NYSE:BGS) earned $61.98 million, a 43.12% increase from the preceding quarter. B&G Foods's sales decreased to $505.13 million, a 1.0% change since Q4. In Q4, B&G Foods earned $43.31 million, whereas sales reached $510.24 million.

Why ROCE Is Significant

Changes in earnings and sales indicate shifts in B&G Foods's Return on Capital Employed, a measure of yearly pre-tax profit relative to capital employed by a business. Generally, a higher ROCE suggests successful growth of a company and is a sign of higher earnings per share in the future. In Q1, B&G Foods posted an ROCE of 0.07%.

It is important to keep in mind ROCE evaluates past performance and is not used as a predictive tool. It is a good measure of a company's recent performance, but several factors could affect earnings and sales in the near future.

Return on Capital Employed is an important measurement of efficiency and a useful tool when comparing companies that operate in the same industry. A relatively high ROCE indicates a company may be generating profits that can be reinvested into more capital, leading to higher returns and growing EPS for shareholders.

In B&G Foods's case, the positive ROCE ratio will be something investors pay attention to before making long-term financial decisions.

Q1 Earnings Insight

B&G Foods reported Q1 earnings per share at $0.52/share, which did not meet analyst predictions of $0.56/share.