Flowers Foods Inc (FLO)
Profitability ratios
Return on sales
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Gross profit margin | 49.50% | 48.30% | 47.94% | 49.77% | 49.95% |
| Operating profit margin | 6.82% | 3.40% | 6.31% | 6.81% | 7.33% |
| Pretax margin | 6.45% | 3.09% | 6.22% | 6.25% | 4.57% |
| Net profit margin | 4.86% | 2.42% | 4.75% | 4.76% | 3.47% |
Flowers Foods Inc has shown consistency in maintaining a relatively stable gross profit margin over the years, ranging from 47.94% to 49.77%. This indicates the company's ability to efficiently manage its production costs and generate profits from its core operations.
However, the operating profit margin experienced fluctuations, reaching its lowest point in 2023 at 3.40%. This could be a red flag for investors as it suggests a decrease in the company's ability to control its operating expenses relative to its revenue during that year.
The pretax margin also fluctuated over the years, with a significant drop in 2023. This indicates that Flowers Foods Inc faced challenges in managing its overall expenses and generating profits before accounting for taxes.
On a positive note, the net profit margin showed improvement in 2024, reaching 4.86%. This suggests that the company was able to enhance its bottom line profitability, reflecting a good performance in managing both operating and non-operating expenses.
In conclusion, while Flowers Foods Inc has maintained a healthy gross profit margin, there are fluctuations in the operating and pretax margins that suggest the company may need to focus on controlling its expenses more effectively to improve overall profitability.
Return on investment
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 10.24% | 5.04% | 9.15% | 9.07% | 9.67% |
| Return on assets (ROA) | 7.30% | 3.60% | 6.89% | 6.34% | 4.58% |
| Return on total capital | 25.96% | 14.33% | 22.70% | 21.42% | 17.43% |
| Return on equity (ROE) | 17.60% | 9.13% | 15.82% | 14.61% | 11.09% |
Flowers Foods Inc's profitability ratios show a mixed performance over the past five years.
- The Operating Return on Assets (Operating ROA) has fluctuated but remained relatively stable, ranging from 5.04% to 10.24%. This ratio indicates that the company generated operating income equivalent to 5.04% to 10.24% of its total assets.
- The Return on Assets (ROA) has also varied, with values ranging from 3.60% to 7.30%. This ratio reflects the company's ability to generate net income relative to its total assets.
- Return on Total Capital shows an increasing trend, from 17.43% to 25.96%, suggesting that Flowers Foods has been efficient in generating returns from both equity and debt capital employed in the business.
- The Return on Equity (ROE) has displayed fluctuations but generally shows an upward trend, rising from 9.13% to 17.60%. This indicates that the company has been increasing its profitability in relation to shareholders' equity over the years.
Overall, while there have been fluctuations in profitability ratios, Flowers Foods Inc has shown stability and improvement in generating returns from its assets, capital, and equity over the analyzed period.