Flowers Foods Inc (FLO)
Return on assets (ROA)
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 248,116 | 123,416 | 228,394 | 206,187 | 152,318 |
| Total assets | US$ in thousands | 3,400,450 | 3,426,950 | 3,312,990 | 3,253,310 | 3,323,020 |
| ROA | 7.30% | 3.60% | 6.89% | 6.34% | 4.58% |
December 31, 2024 calculation
ROA = Net income ÷ Total assets
= $248,116K ÷ $3,400,450K
= 7.30%
Flowers Foods Inc's Return on Assets (ROA) has shown significant fluctuations over the past five years, ranging from 3.60% in 2023 to a peak of 7.30% in 2024. The company's ROA increased steadily from 4.58% in 2020 to 6.34% in 2021, and further improved to 6.89% in 2022 before experiencing a decline in 2023. Despite the drop in 2023, the ROA bounced back strongly to reach its highest level in 2024.
These fluctuations in ROA indicate varying levels of efficiency in utilizing the company's assets to generate profits. A higher ROA suggests that the company is more adept at generating earnings relative to its asset base, reflecting favorable operational performance. Conversely, a lower ROA may signify inefficiencies in asset utilization and profitability.
It is essential for Flowers Foods Inc to analyze the underlying reasons for these fluctuations in ROA and implement strategies to sustain or improve its asset efficiency over time to ensure long-term profitability and shareholder value.
Peer comparison
Dec 31, 2024