Flowers Foods Inc (FLO)
Cash conversion cycle
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Oct 7, 2023 | Sep 30, 2023 | Jul 15, 2023 | Jun 30, 2023 | Apr 22, 2023 | Mar 31, 2023 | Dec 31, 2022 | Oct 8, 2022 | Sep 30, 2022 | Jun 30, 2022 | Apr 23, 2022 | Mar 31, 2022 | Dec 31, 2021 | Oct 9, 2021 | Sep 30, 2021 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 37.20 | 35.89 | 29.04 | 29.54 | 27.59 | 18.62 | 25.81 | 16.28 | 27.46 | 24.20 | 48.19 | 49.44 | 24.33 | 26.75 | 27.47 | 17.56 | 34.58 | 30.16 | 19.75 | 23.71 |
| Days of sales outstanding (DSO) | days | — | — | — | — | — | 28.36 | — | 29.02 | — | 25.82 | — | — | — | — | — | 25.27 | — | — | — | — |
| Number of days of payables | days | — | — | — | — | — | 33.45 | — | 30.35 | — | 44.81 | — | — | 50.83 | — | — | 35.18 | — | — | 39.35 | — |
| Cash conversion cycle | days | 37.20 | 35.89 | 29.04 | 29.54 | 27.59 | 13.52 | 25.81 | 14.95 | 27.46 | 5.22 | 48.19 | 49.44 | -26.50 | 26.75 | 27.47 | 7.65 | 34.58 | 30.16 | -19.60 | 23.71 |
December 31, 2024 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 37.20 + — – —
= 37.20
The cash conversion cycle of Flowers Foods Inc has shown fluctuations over the period from September 2021 to December 2024. The cash conversion cycle represents the time taken by the company to convert its investments in inventory and other resources into cash flows from sales.
In September 2021, the company had a cash conversion cycle of 23.71 days, indicating that it took around 23.71 days for Flowers Foods to convert its investments into cash. However, by October 2021, the cycle decreased significantly to -19.60 days, implying that the company was able to convert its investments into cash even before making them, which can be a sign of efficient working capital management.
The cycle then increased to 30.16 days by December 2021 and continued to fluctuate over the following years, reaching a peak of 49.44 days in December 2022 and then decreasing to 5.22 days by April 2023. Subsequently, the cycle increased again before stabilizing around 29-30 days from March 2024 to June 2024.
The cash conversion cycle of Flowers Foods Inc provides insights into the efficiency of its operations and working capital management. A shorter cycle typically indicates better efficiency in managing inventory, accounts receivable, and accounts payable. On the other hand, a longer cycle may suggest potential liquidity issues or inefficiencies in the company's supply chain or sales processes.
Overall, monitoring the cash conversion cycle can help assess the company's cash flow generation, operational efficiency, and overall financial health over time.
Peer comparison
Dec 31, 2024