Flowers Foods Inc (FLO)
Working capital turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 5,103,490 | 5,090,830 | 4,805,820 | 4,330,770 | 4,387,990 |
| Total current assets | US$ in thousands | 656,364 | 687,713 | 804,940 | 746,118 | 1,014,620 |
| Total current liabilities | US$ in thousands | 548,603 | 659,152 | 564,425 | 519,917 | 504,105 |
| Working capital turnover | 47.36 | 178.24 | 19.98 | 19.15 | 8.60 |
December 31, 2024 calculation
Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $5,103,490K ÷ ($656,364K – $548,603K)
= 47.36
The working capital turnover ratio for Flowers Foods Inc has shown significant fluctuations over the years, indicating changes in the efficiency of its working capital management. In 2020, the ratio was 8.60, reflecting that the company generated $8.60 of revenue for every dollar of working capital invested.
By the end of 2021, there was a notable increase to 19.15, suggesting improved efficiency in utilizing working capital to generate sales. This trend continued in 2022 and 2023, with ratios of 19.98 and 178.24, respectively, indicating a substantial enhancement in working capital utilization efficiency and revenue generation.
However, there was a considerable drop in the ratio to 47.36 by the end of 2024. While still significantly higher than the 2020 level, this decline may signify challenges or changes in the company's working capital management efficiency and the ability to convert its working capital into sales revenue effectively.
Overall, the working capital turnover ratios for Flowers Foods Inc have displayed varying trends, indicating fluctuations in the company's efficiency in using its working capital to drive revenue generation over the years. Further analysis and context would be required to fully understand the factors contributing to these fluctuations and their implications.
Peer comparison
Dec 31, 2024