Flowers Foods Inc (FLO)

Working capital turnover

		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
Revenue (ttm)	US$ in thousands	5,090,830	5,044,470	5,003,380	5,211,260	4,660,260	4,605,390	4,464,530	4,330,770	4,370,320	4,332,170	4,340,720	4,387,990	4,282,709	4,259,620	4,209,519	4,123,979	4,086,887	4,043,775	4,009,299	3,951,849
Total current assets	US$ in thousands	687,713	714,579	748,940	715,853	804,940	835,416	818,866	746,118	849,333	839,972	788,131	838,203	866,643	849,472	831,820	553,918	565,827	569,461	577,388	543,724
Total current liabilities	US$ in thousands	659,152	669,859	555,457	542,119	564,425	594,531	538,024	519,917	536,591	509,767	461,206	504,105	516,283	538,076	504,914	528,143	521,942	494,945	495,145	400,339
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

December 31, 2023 calculation

Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $5,090,830K ÷ ($687,713K – $659,152K)
= 178.24

The working capital turnover ratio of Flowers Foods Inc has displayed fluctuations over the past several periods, ranging from as low as 12.22 to as high as 178.24. A high working capital turnover ratio indicates that the company is efficiently using its working capital to generate sales revenue. In contrast, a low ratio suggests that the company may not be effectively utilizing its working capital.

The significant increase in the working capital turnover ratio from 19.38 in December 2022 to 178.24 in December 2023 indicates a substantial improvement in the efficiency of Flowers Foods Inc in generating sales from its working capital. This could be a positive sign reflecting effective management of current assets and liabilities to support revenue generation.

On the other hand, the drop in the ratio to 25.86 in July 2023 followed by a decline to 30.00 in April 2023 may raise concerns about working capital management during those periods. The company may have been less efficient in using its working capital to drive sales during these specific quarters.

Overall, understanding the trends and fluctuations in the working capital turnover ratio of Flowers Foods Inc can provide insights into the company's operational efficiency and financial performance. Further analysis and comparison with industry benchmarks would be beneficial in evaluating the effectiveness of the company's working capital management.