Flowers Foods Inc (FLO)
Return on total capital
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 193,716 | 327,632 | 302,306 | 239,501 | 250,930 |
| Long-term debt | US$ in thousands | 1,048,140 | 891,842 | 890,609 | 960,103 | 862,778 |
| Total stockholders’ equity | US$ in thousands | 1,351,780 | 1,443,290 | 1,411,270 | 1,372,990 | 1,263,430 |
| Return on total capital | 8.07% | 14.03% | 13.13% | 10.27% | 11.80% |
December 31, 2023 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $193,716K ÷ ($1,048,140K + $1,351,780K)
= 8.07%
Flowers Foods Inc's return on total capital has shown fluctuations over the past five years. The return on total capital was 8.07% as of December 31, 2023, which represented a decrease from the previous year. In 2022, the return on total capital was 14.03%, indicating a significant improvement from the previous year. Similarly, in 2021, the return on total capital was 13.13%, also showing a strong performance. However, in 2020 and 2019, the return on total capital was 10.27% and 11.80% respectively, reflecting slightly lower returns compared to the preceding years.
Overall, the trend in Flowers Foods Inc's return on total capital shows some variability, with certain years performing better than others. It is essential for the company to analyze the factors contributing to these fluctuations to maintain and improve its profitability and efficiency in utilizing its total capital resources.
Peer comparison
Dec 31, 2023