Flowers Foods Inc (FLO)

Current ratio

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Total current assets	US$ in thousands	687,713	804,940	746,118	838,203	553,918
Total current liabilities	US$ in thousands	659,152	564,425	519,917	504,105	528,143
Current ratio		1.04	1.43	1.44	1.66	1.05

December 31, 2023 calculation

Current ratio = Total current assets ÷ Total current liabilities
= $687,713K ÷ $659,152K
= 1.04

The current ratio of Flowers Foods Inc has exhibited fluctuations over the past five years. In 2023, the current ratio decreased to 1.04 from 1.43 in 2022. This suggests that the company may have struggled to meet its short-term obligations with its current assets in 2023. A lower current ratio could indicate potential liquidity concerns or inefficiencies in managing current assets and liabilities.

Comparing the current ratio of 1.04 in 2023 to the ratios of 1.44 in 2021 and 1.66 in 2020, there appears to be a declining trend in the company's short-term solvency position. However, it is worth noting that the current ratio in 2019 was particularly low at 1.05, indicating a historical pattern of fluctuation in this ratio for Flowers Foods Inc.

Overall, the decrease in the current ratio from 2022 to 2023 raises questions about the company's ability to cover its short-term obligations effectively. Further analysis of the underlying factors affecting current assets and liabilities would be necessary to understand the reasons behind the fluctuations in the current ratio for Flowers Foods Inc.