Flowers Foods Inc (FLO)

Current ratio

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Total current assets	US$ in thousands	656,364	687,713	804,940	746,118	1,014,620
Total current liabilities	US$ in thousands	548,603	659,152	564,425	519,917	504,105
Current ratio		1.20	1.04	1.43	1.44	2.01

December 31, 2024 calculation

Current ratio = Total current assets ÷ Total current liabilities
= $656,364K ÷ $548,603K
= 1.20

The current ratio of Flowers Foods Inc has shown fluctuating trends over the past five years. As of December 31, 2020, the current ratio stood at a healthy 2.01, indicating the company had more than enough current assets to cover its current liabilities. However, there has been a notable decline in the current ratio over the subsequent years, with it dropping to 1.44 by December 31, 2021 and further decreasing to 1.43 by December 31, 2022. This suggests a potential decrease in the company's liquidity position and ability to meet short-term obligations.

By December 31, 2023, the current ratio declined significantly to 1.04, indicating a potential strain on the company's liquidity and its ability to cover short-term obligations adequately with current assets. However, by December 31, 2024, there was a slight improvement in the current ratio to 1.20, although it still remains relatively low compared to previous years.

Overall, the decreasing trend in Flowers Foods Inc's current ratio over the past five years may raise concerns regarding the company's short-term liquidity position and ability to meet its current liabilities comfortably. Further analysis of the company's current asset and liability composition would be necessary to determine the underlying reasons for these fluctuations in the current ratio.