Flowers Foods Inc (FLO)
Cash conversion cycle
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 37.20 | 37.56 | 35.35 | 34.14 | 32.13 |
| Days of sales outstanding (DSO) | days | — | — | — | — | — |
| Number of days of payables | days | — | — | — | — | — |
| Cash conversion cycle | days | 37.20 | 37.56 | 35.35 | 34.14 | 32.13 |
December 31, 2024 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 37.20 + — – —
= 37.20
The cash conversion cycle for Flowers Foods Inc has been gradually increasing over the past five years. As of December 31, 2020, the cycle stood at 32.13 days and increased to 34.14 days by December 31, 2021. This trend continued with a further increase to 35.35 days by December 31, 2022, and a higher level of 37.56 days by December 31, 2023. Notably, there was a slight decrease to 37.20 days by December 31, 2024.
The cash conversion cycle indicates the time it takes for a company to convert its investments in inventory and other resources into cash flows from sales. A higher cash conversion cycle may imply inefficiencies in managing inventory, receivables, and payables, potentially resulting in increased working capital requirements and reduced liquidity.
The increasing trend in Flowers Foods Inc's cash conversion cycle suggests a potential need for the company to assess and optimize its inventory management, accounts receivable collection, and accounts payable processes to enhance its operational efficiency and cash flow management in the coming years.
Peer comparison
Dec 31, 2024