Flowers Foods Inc (FLO)

Cash ratio

		Dec 31, 2023	Oct 7, 2023	Jul 15, 2023	Apr 22, 2023	Dec 31, 2022	Oct 8, 2022	Apr 23, 2022	Dec 31, 2021	Oct 9, 2021	Jul 17, 2021	Apr 24, 2021	Dec 31, 2020	Sep 30, 2020	Jul 11, 2020	Apr 18, 2020	Dec 31, 2019	Oct 5, 2019	Jul 13, 2019	Apr 20, 2019	Dec 31, 2018
Cash and cash equivalents	US$ in thousands	22,527	14,561	11,711	27,720	165,134	172,744	205,147	185,871	307,523	292,270	250,570	307,476	325,831	299,562	252,683	11,044	6,968	9,769	11,584	25,306
Short-term investments	US$ in thousands	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—
Total current liabilities	US$ in thousands	659,152	669,859	555,457	542,119	564,425	594,531	538,024	519,917	536,591	509,767	461,206	504,105	516,283	538,076	504,914	528,143	521,942	494,945	495,145	400,339
Cash ratio		0.03	0.02	0.02	0.05	0.29	0.29	0.38	0.36	0.57	0.57	0.54	0.61	0.63	0.56	0.50	0.02	0.01	0.02	0.02	0.06

December 31, 2023 calculation

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

The cash ratio of Flowers Foods Inc has shown fluctuations over the past few years. The ratio compares a company's cash and cash equivalents to its current liabilities, indicating its ability to cover short-term obligations with its most liquid assets.

From the data provided, we observe that the cash ratio was relatively stable and healthy around 0.50 to 0.60 from December 2020 to July 2021, suggesting a strong ability to meet current liabilities with cash on hand during that period. However, there was a significant drop in the cash ratio to 0.02 in October 2019, indicating a temporary weakness in liquidity management.

It is essential to note the notable spike in the cash ratio to 0.29 in December 2022 and a subsequent decrease to 0.03 in December 2023. These fluctuations may suggest variability in cash availability relative to current liabilities, potentially influenced by different factors impacting the company's cash position during the respective periods.

Overall, the trend in Flowers Foods Inc cash ratio reflects a mix of strengths and weaknesses in managing short-term liquidity, indicating the need for a consistent focus on maintaining adequate cash reserves to meet financial obligations effectively.