Flowers Foods Inc (FLO)

Cash ratio

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Cash and cash equivalents	US$ in thousands	22,527	165,134	185,871	307,476	11,044
Short-term investments	US$ in thousands	—	—	—	—	—
Total current liabilities	US$ in thousands	659,152	564,425	519,917	504,105	528,143
Cash ratio		0.03	0.29	0.36	0.61	0.02

December 31, 2023 calculation

Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($22,527K + $—K) ÷ $659,152K
= 0.03

Flowers Foods Inc's cash ratio has fluctuated significantly over the past five years. The cash ratio measures a company's ability to cover its short-term liabilities with its cash and cash equivalents. A higher cash ratio indicates a stronger ability to settle short-term obligations.

In 2023, the cash ratio dropped to 0.03, signaling a substantial decrease compared to the previous year. This decline may indicate that Flowers Foods Inc has a lower level of cash on hand relative to its short-term obligations. However, it is essential to consider the company's overall liquidity position and cash management strategies in conjunction with this ratio.

The cash ratio reached its peak in 2020 at 0.61, reflecting a robust ability to cover short-term liabilities with available cash. This suggests that Flowers Foods Inc had a significant amount of cash reserves relative to its short-term obligations in that year. The sharp contrast between 2020 and 2023 indicates a notable shift in the company's liquidity position over this period.

Further analysis of Flowers Foods Inc's cash ratio trends and the factors influencing the fluctuations can provide valuable insights into the company's liquidity management and financial health.