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.
Peer comparison
Dec 31, 2023