Flowers Foods Inc (FLO)

Fixed asset turnover

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Revenue	US$ in thousands	5,090,830	4,805,820	4,330,770	4,387,990	4,123,970
Property, plant and equipment	US$ in thousands	962,981	849,325	798,728	699,393	717,822
Fixed asset turnover		5.29	5.66	5.42	6.27	5.75

December 31, 2023 calculation

Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $5,090,830K ÷ $962,981K
= 5.29

Flowers Foods Inc's fixed asset turnover ratio has exhibited some fluctuations over the past five years. The ratio indicates the company's ability to generate sales revenue from its investment in fixed assets. A higher fixed asset turnover ratio is generally preferred as it suggests that the company is efficiently utilizing its fixed assets to generate sales.

In 2020, the fixed asset turnover ratio was the highest at 6.27, indicating that Flowers Foods Inc generated $6.27 in sales for every $1 invested in fixed assets during that year. This high ratio suggests a high level of efficiency in utilizing fixed assets to drive revenue.

However, in 2022, the fixed asset turnover ratio saw a slight decline to 5.66, followed by a further decrease in 2023 to 5.29. These reductions may indicate either a decline in sales relative to the investment in fixed assets or an increase in the book value of fixed assets without a proportional increase in sales.

Overall, despite some variations in the fixed asset turnover ratio, Flowers Foods Inc has maintained relatively high efficiency in generating sales from its fixed assets over the past five years. Continued monitoring and analysis of this ratio will be important to assess the company's ongoing operational efficiency and capital utilization.