Flowers Foods Inc (FLO)
Return on total capital
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 366,071 | 193,716 | 327,632 | 302,306 | 239,356 |
| Long-term debt | US$ in thousands | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 1,410,110 | 1,351,780 | 1,443,290 | 1,411,270 | 1,372,990 |
| Return on total capital | 25.96% | 14.33% | 22.70% | 21.42% | 17.43% |
December 31, 2024 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $366,071K ÷ ($—K + $1,410,110K)
= 25.96%
Flowers Foods Inc's return on total capital has shown variability over the past five years.
- In December 2020, the return on total capital was 17.43%, indicating that for every dollar of total capital employed in the business, the company generated a return of 17.43%.
- By December 2021, the return on total capital increased to 21.42%, suggesting improved efficiency in utilizing capital to generate profits.
- The trend continued in December 2022, with return on total capital further increasing to 22.70%, indicating the company's ability to generate higher returns with the capital at its disposal.
- However, there was a slight decline in December 2023, where the return on total capital dropped to 14.33%. This could potentially signify challenges or inefficiencies in capital management or business operations.
- The most recent data point, December 2024, shows a significant improvement, with a return on total capital of 25.96%, indicating a strong performance in effectively utilizing capital to generate profits.
Overall, Flowers Foods Inc's return on total capital has exhibited fluctuations but generally improved over the five-year period, highlighting the company's ability to generate returns relative to the total capital invested.
Peer comparison
Dec 31, 2024