Flowers Foods Inc (FLO)
Quick ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 22,527 | 165,134 | 185,871 | 307,476 | 11,044 |
| Short-term investments | US$ in thousands | — | — | — | — | — |
| Receivables | US$ in thousands | 345,608 | 349,477 | 318,197 | 302,212 | 321,830 |
| Total current liabilities | US$ in thousands | 659,152 | 564,425 | 519,917 | 504,105 | 528,143 |
| Quick ratio | 0.56 | 0.91 | 0.97 | 1.21 | 0.63 |
December 31, 2023 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($22,527K
+ $—K
+ $345,608K)
÷ $659,152K
= 0.56
The quick ratio of Flowers Foods Inc has shown fluctuation over the past five years. In 2023, the quick ratio stands at 0.56, which indicates that the company may struggle to meet its short-term obligations using its most liquid assets. This represents a significant decrease from 2022 when the quick ratio was 0.91. Compared to 2021 and 2020, where the quick ratio was 0.97 and 1.21 respectively, the current ratio has declined, suggesting a potential weakening in the company's ability to cover its short-term liabilities without relying on inventory.
However, it is worth noting that the quick ratio in 2019 was even lower at 0.63, indicating an improvement in liquidity over the past year. Overall, the downward trend in the quick ratio over the past two years raises concerns about Flowers Foods Inc's short-term liquidity position and indicates a need for the company to closely monitor its ability to meet its immediate financial obligations.
Peer comparison
Dec 31, 2023