Flowers Foods Inc (FLO)
Activity ratios
Short-term
Turnover ratios
| Dec 31, 2023 | Oct 7, 2023 | Jul 15, 2023 | Apr 22, 2023 | Dec 31, 2022 | Oct 8, 2022 | Apr 23, 2022 | Dec 31, 2021 | Oct 9, 2021 | Jul 17, 2021 | Apr 24, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jul 11, 2020 | Apr 18, 2020 | Dec 31, 2019 | Oct 5, 2019 | Jul 13, 2019 | Apr 20, 2019 | Dec 31, 2018 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Inventory turnover | 25.92 | 25.91 | 20.00 | 19.96 | 13.58 | 10.89 | 18.36 | 19.18 | 23.44 | 24.40 | 17.02 | 17.80 | 17.08 | 17.59 | 19.92 | 15.67 | 11.55 | 8.10 | 3.94 | 3.82 |
| Receivables turnover | 14.73 | 13.38 | 11.39 | 13.87 | 13.33 | — | 13.20 | 13.61 | — | — | 14.55 | 14.52 | — | — | — | — | — | — | — | — |
| Payables turnover | 15.01 | 14.42 | 10.73 | 10.78 | 6.67 | 5.21 | 9.16 | 9.64 | 11.77 | 11.61 | 9.04 | 9.87 | 8.51 | 8.81 | 10.50 | 8.54 | 5.98 | 3.92 | 2.04 | 1.94 |
| Working capital turnover | 178.24 | 112.80 | 25.86 | 30.00 | 19.38 | 19.12 | 15.90 | 19.15 | 13.97 | 13.12 | 13.28 | 13.13 | 12.22 | 13.68 | 12.88 | 160.00 | 93.13 | 54.27 | 48.75 | 27.56 |
Flowers Foods Inc's activity ratios provide insights into the company's efficiency in managing its assets and operations.
1. Inventory Turnover:
Flowers Foods Inc's inventory turnover has been consistently high, indicating that the company efficiently manages its inventory levels and quickly sells its products. The trend shows a significant improvement over the years, suggesting enhanced operational efficiency and effective inventory management.
2. Receivables Turnover:
The receivables turnover ratio reflects how efficiently the company collects payments from customers. Flowers Foods Inc's receivables turnover has shown fluctuations, indicating varying effectiveness in collecting receivables. However, there are missing data points, making it challenging to draw concrete conclusions regarding the trend.
3. Payables Turnover:
The payables turnover ratio highlights how quickly the company pays its suppliers. Flowers Foods Inc's payables turnover has generally improved over the years, indicating a better management of payables and potentially favorable relationships with suppliers.
4. Working Capital Turnover:
The working capital turnover ratio measures how effectively the company generates revenue relative to its working capital. Flowers Foods Inc's working capital turnover has shown varying trends, with a notable spike in activity towards the end of 2023. This may suggest improved efficiency in utilizing working capital to generate sales.
Overall, Flowers Foods Inc's activity ratios reflect a generally efficient operational performance, with notable improvements in inventory turnover and payables turnover. However, further analysis and comparison with industry benchmarks would provide a more comprehensive assessment of the company's operational efficiency and asset management.
Average number of days
| Dec 31, 2023 | Oct 7, 2023 | Jul 15, 2023 | Apr 22, 2023 | Dec 31, 2022 | Oct 8, 2022 | Apr 23, 2022 | Dec 31, 2021 | Oct 9, 2021 | Jul 17, 2021 | Apr 24, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jul 11, 2020 | Apr 18, 2020 | Dec 31, 2019 | Oct 5, 2019 | Jul 13, 2019 | Apr 20, 2019 | Dec 31, 2018 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 14.08 | 14.09 | 18.25 | 18.29 | 26.87 | 33.53 | 19.88 | 19.03 | 15.57 | 14.96 | 21.45 | 20.50 | 21.36 | 20.75 | 18.32 | 23.30 | 31.61 | 45.05 | 92.61 | 95.46 |
| Days of sales outstanding (DSO) | days | 24.78 | 27.29 | 32.05 | 26.31 | 27.37 | — | 27.64 | 26.82 | — | — | 25.08 | 25.14 | — | — | — | — | — | — | — | — |
| Number of days of payables | days | 24.32 | 25.31 | 34.02 | 33.86 | 54.70 | 70.05 | 39.84 | 37.85 | 31.02 | 31.45 | 40.36 | 36.98 | 42.87 | 41.41 | 34.77 | 42.73 | 61.08 | 93.22 | 179.21 | 188.45 |
Flowers Foods Inc's activity ratios provide insights into the efficiency of the company's management of inventory, receivables, and payables.
1. Days of Inventory on Hand (DOH):
- The trend in DOH shows a decreasing pattern over the years, indicating that the company has been able to manage its inventory more efficiently. The lower the number of days, the faster the company is able to sell its inventory.
- The company's DOH has reduced from 95.46 days in Dec 2019 to 14.08 days in Dec 2023, reflecting a significant improvement in inventory management efficiency.
2. Days of Sales Outstanding (DSO):
- DSO measures how quickly the company collects its accounts receivable. Unfortunately, data is missing for several periods which limits trend analysis. However, the recent data suggests an improvement in collecting receivables compared to previous periods.
- A lower DSO indicates that the company is collecting revenues more quickly, which can positively impact cash flows and working capital management.
3. Number of Days of Payables:
- The trend in the number of days of payables shows a decreasing pattern, indicating that the company is taking longer to pay its suppliers. This can be favorable for cash flow management as the company has more time to settle its payables.
- Despite fluctuations, the payables days have overall decreased from 188.45 days in Dec 2018 to 24.32 days in Dec 2023, indicating that the company is managing its payables more efficiently.
In conclusion, Flowers Foods Inc has shown improvements in managing its inventory levels efficiently and collecting receivables promptly, while also extending the number of days it takes to pay its suppliers. These trends indicate better working capital management and potential positive impacts on the company's cash flows.
Long-term
| Dec 31, 2023 | Oct 7, 2023 | Jul 15, 2023 | Apr 22, 2023 | Dec 31, 2022 | Oct 8, 2022 | Apr 23, 2022 | Dec 31, 2021 | Oct 9, 2021 | Jul 17, 2021 | Apr 24, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jul 11, 2020 | Apr 18, 2020 | Dec 31, 2019 | Oct 5, 2019 | Jul 13, 2019 | Apr 20, 2019 | Dec 31, 2018 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Fixed asset turnover | 5.29 | 5.25 | 5.20 | 5.43 | 5.49 | 5.49 | 5.47 | 5.42 | 6.19 | 6.17 | 6.23 | 6.27 | 6.17 | 6.11 | 6.04 | 5.75 | 5.76 | 5.67 | 5.63 | 5.31 |
| Total asset turnover | 1.49 | 1.47 | 1.43 | 1.50 | 1.41 | 1.38 | 1.34 | 1.33 | 1.32 | 1.30 | 1.33 | 1.32 | 1.27 | 1.25 | 1.23 | 1.30 | 1.27 | 1.26 | 1.24 | 1.39 |
The fixed asset turnover ratio for Flowers Foods Inc has been relatively stable over the past few years, ranging between 5.20 and 6.27. This indicates that the company is generating between $5.20 and $6.27 in sales for every dollar invested in fixed assets. A higher fixed asset turnover ratio generally implies that the company is efficiently utilizing its fixed assets to generate revenue.
On the other hand, the total asset turnover ratio has fluctuated between 1.23 and 1.50 during the same period. This metric reflects Flowers Foods' ability to generate sales relative to its total assets. A higher total asset turnover ratio suggests that the company is effectively using its total assets to generate revenue.
Overall, both the fixed asset turnover and total asset turnover ratios demonstrate that Flowers Foods Inc has been managing its assets efficiently to generate sales. The consistent or increasing trend in these ratios indicates a healthy operational performance in terms of asset utilization.