Flowers Foods Inc (FLO)

Return on assets (ROA)

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Net income	US$ in thousands	123,416	228,394	206,187	152,318	164,538
Total assets	US$ in thousands	3,426,950	3,312,990	3,253,310	3,323,020	3,177,780
ROA		3.60%	6.89%	6.34%	4.58%	5.18%

December 31, 2023 calculation

ROA = Net income ÷ Total assets
= $123,416K ÷ $3,426,950K
= 3.60%

The Return on Assets (ROA) for Flowers Foods Inc has displayed some fluctuation over the past five years. In 2023, the ROA decreased to 3.60% from 6.89% in 2022, indicating a decline in the company's ability to generate profit from its assets. Despite this decline, the ROA in 2023 is still within a reasonable range.

Comparing the ROA of 2023 to the figures from 2019 to 2021, it is noticeable that the company experienced a peak ROA of 6.89% in 2022, followed by a decline in 2023. However, Flowers Foods Inc has historically maintained a relatively stable ROA performance, ranging between 4.58% and 6.89% over the past five years.

A lower ROA in 2023 may suggest that the company could be facing challenges in efficiently utilizing its assets to generate earnings or may have experienced a decrease in profitability relative to the size of its asset base. Further analysis of the company's financial performance and asset management strategies would be necessary to understand the reasons behind the fluctuation in ROA and to determine potential areas for improvement.