Flowers Foods Inc (FLO)

Short-term

Turnover ratios

Flowers Foods Inc's activity ratios provide insights into how efficiently the company manages its resources. Let's analyze the key activity ratios:

1. Inventory Turnover: Flowers Foods Inc's inventory turnover ratio fluctuated over the period, ranging from 7.38 to 22.42 times. A higher turnover indicates that inventory is being sold quickly, which is generally positive as it reduces carrying costs and signifies efficient inventory management. However, the variability in the ratio suggests potential fluctuations in sales or inventory levels.

2. Receivables Turnover: The data indicates that receivables turnover information is not available for most periods. This could imply that Flowers Foods Inc may not heavily rely on credit sales or could have a different reporting structure for this metric. Further information on receivables turnover is needed to assess the efficiency of the company in collecting payments from customers.

3. Payables Turnover: Flowers Foods Inc's payables turnover ratio ranged from 7.18 to 12.03 times, indicating that the company takes varying amounts of time to pay its suppliers. A higher turnover ratio suggests that the company efficiently manages its payables by paying suppliers promptly, while a lower ratio may indicate potential cash flow challenges or negotiations with suppliers for extended payment terms.

4. Working Capital Turnover: The working capital turnover ratio provides insight into how effectively Flowers Foods Inc utilizes its working capital to generate sales. The data shows a wide range of ratios, indicating fluctuations in the efficiency of working capital utilization over time. A higher ratio typically indicates more efficient use of working capital in generating revenue, while a lower ratio may suggest inefficiencies in capital deployment.

In conclusion, while Flowers Foods Inc demonstrates varying levels of efficiency in managing its inventory, payables, and working capital, additional information on receivables turnover would provide a more complete picture of the company's overall activity performance.

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Average number of days

Based on the provided data, here is the analysis of Flowers Foods Inc's activity ratios:

1. Days of Inventory on Hand (DOH):
- The company's DOH fluctuated over the periods, ranging from a low of 17.56 days to a high of 49.44 days.
- Generally, lower DOH values indicate better inventory management efficiency, as the company is turning over its inventory more quickly.
- The trend in DOH shows some variability, with occasional spikes indicating potential inventory management challenges.

2. Days of Sales Outstanding (DSO):
- DSO data is missing for most periods, which makes it challenging to analyze the company's accounts receivable turnover efficiency.
- The available DSO values range from 25.27 days to 29.02 days, suggesting moderate efficiency in collecting receivables.
- A lower DSO value indicates faster collection of accounts receivable, which is beneficial for cash flow management.

3. Number of Days of Payables:
- The number of days of payables ranged from 30.35 days to 50.83 days during the periods analyzed.
- Higher days of payables suggest that the company takes longer to pay its suppliers, potentially indicating good cash flow management or negotiating favorable credit terms.
- However, extended payables periods could strain supplier relationships if not effectively managed.

In summary, Flowers Foods Inc's activity ratios reflect some variability in inventory management and accounts payable practices. While the company shows moderate efficiency in collecting receivables and managing payables, further analysis and comparison to industry benchmarks would provide a more comprehensive understanding of its performance in these areas.

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Long-term

Flowers Foods Inc's fixed asset turnover ratio has shown fluctuations over the analyzed periods, ranging from a low of 3.72 to a high of 6.05. This ratio indicates the company's efficiency in generating sales from its investments in fixed assets. A higher fixed asset turnover ratio is generally preferred as it suggests that the company is utilizing its fixed assets more effectively to generate revenue.

On the other hand, Flowers Foods Inc's total asset turnover ratio has also varied during the periods under review, with values ranging from 1.23 to 1.58. The total asset turnover ratio measures how efficiently the company is using its total assets to generate sales. A higher total asset turnover ratio implies better asset utilization and efficiency in generating revenues from its total asset base.

Overall, Flowers Foods Inc has shown relatively strong asset turnover ratios, indicating efficient utilization of both fixed and total assets in generating sales. However, the company should continue to monitor and potentially improve its fixed asset turnover ratio to ensure optimal utilization of its fixed asset investments.