Flowers Foods Inc (FLO)

The liquidity ratios of Flowers Foods Inc show mixed trends over the past five years. The current ratio has gradually declined from 1.66 in 2020 to 1.04 in 2023, indicating a decrease in the company's ability to meet its short-term obligations with its current assets.

Similarly, the quick ratio has also decreased over the years, from 1.21 in 2020 to 0.56 in 2023, indicating a decrease in the company's ability to cover its short-term liabilities with its most liquid assets.

The cash ratio has fluctuated significantly over the years, reaching its lowest point in 2019 at 0.02 and then increasing to 0.36 in 2021 before dropping again to 0.03 in 2023. This indicates that Flowers Foods Inc has limited cash on hand relative to its current liabilities, which may pose a liquidity risk.

Overall, the declining trend in the current and quick ratios, as well as the fluctuating cash ratio, suggest that Flowers Foods Inc may be facing challenges in managing its short-term liquidity and may need to closely monitor its cash flows and working capital management practices to ensure financial stability.

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Additional liquidity measure

The cash conversion cycle for Flowers Foods Inc has shown fluctuations over the past five years. The company's ability to manage its cash effectively improved in 2022, with a decline in the cycle to 12.01 days from 14.41 days in 2021. This indicates that the company was more efficient in converting its investments in inventory and accounts receivables into cash during that period.

However, there was a slight increase in the cash conversion cycle to 14.55 days in 2023, compared to the previous year. This suggests that the company took slightly longer to convert its resources into cash during the most recent period. Overall, Flowers Foods Inc may benefit from further streamlining its inventory and accounts receivables management processes to optimize its cash conversion cycle and enhance liquidity.