Flowers Foods Inc (FLO)
Profitability ratios
Return on sales
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Gross profit margin | 5.99% | 8.73% | 9.31% | 9.96% | 8.08% |
| Operating profit margin | 3.40% | 6.31% | 6.81% | 7.33% | 5.47% |
| Pretax margin | 3.09% | 6.22% | 6.25% | 4.57% | 5.14% |
| Net profit margin | 2.42% | 4.75% | 4.76% | 3.47% | 3.99% |
Flowers Foods Inc has seen fluctuations in its profitability ratios over the past five years. The gross profit margin has shown a declining trend, decreasing from 8.08% in 2019 to 5.99% in 2023. This may indicate challenges in managing costs related to production and sales.
Similarly, the operating profit margin has also declined from 5.47% in 2019 to 3.40% in 2023, suggesting that the company's ability to generate profit from its core operations has decreased over the years.
The pretax margin has shown mixed results, with fluctuations in profitability levels. While the margin increased from 2019 to 2022, it then decreased in 2023. This indicates that the company's earnings before taxes have been inconsistent.
The net profit margin, which represents the profitability after all expenses are deducted, has also shown a decreasing trend from 3.99% in 2019 to 2.42% in 2023. This may imply that the company is facing challenges in managing its expenses and maintaining profitability.
Overall, the profitability ratios of Flowers Foods Inc suggest that the company may be experiencing challenges in maintaining profitability and controlling costs, which may require further analysis and strategic measures to improve its financial performance.
Return on investment
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 5.04% | 9.15% | 9.07% | 9.67% | 7.09% |
| Return on assets (ROA) | 3.60% | 6.89% | 6.34% | 4.58% | 5.18% |
| Return on total capital | 8.07% | 14.03% | 13.13% | 10.27% | 11.80% |
| Return on equity (ROE) | 9.13% | 15.82% | 14.61% | 11.09% | 13.02% |
Flowers Foods Inc's profitability ratios have shown some fluctuations over the past five years.
- The Operating Return on Assets (Operating ROA) decreased from 9.15% in 2022 to 5.04% in 2023, indicating a decline in the company's ability to generate operating income from its assets.
- The Return on Assets (ROA) also saw a decrease from 6.89% in 2022 to 3.60% in 2023, reflecting a decline in the company's overall profitability relative to its total assets.
- On the other hand, the Return on Total Capital increased from 14.03% in 2022 to 8.07% in 2023, showing an improvement in the company's ability to generate returns from its total capital.
- The Return on Equity (ROE) decreased from 15.82% in 2022 to 9.13% in 2023, indicating a lower return to the company's shareholders compared to the previous year.
Overall, Flowers Foods Inc's profitability ratios demonstrate a mixed performance, with some ratios showing improvements while others declined. It's important for investors and stakeholders to monitor these ratios to assess the company's financial health and performance.