Flowers Foods Inc (FLO)

Return on total capital

		Dec 31, 2023	Oct 7, 2023	Jul 15, 2023	Apr 22, 2023	Dec 31, 2022	Oct 8, 2022	Apr 23, 2022	Dec 31, 2021	Oct 9, 2021	Jul 17, 2021	Apr 24, 2021	Dec 31, 2020	Sep 30, 2020	Jul 11, 2020	Apr 18, 2020	Dec 31, 2019	Oct 5, 2019	Jul 13, 2019	Apr 20, 2019	Dec 31, 2018
Earnings before interest and tax (EBIT) (ttm)	US$ in thousands	193,716	210,056	325,889	351,485	309,352	296,297	314,709	302,306	327,711	336,307	342,220	239,501	165,078	163,417	156,242	250,930	276,050	270,851	250,606	232,847
Long-term debt	US$ in thousands	1,048,140	1,037,840	1,074,540	1,063,240	891,842	891,542	891,007	890,609	890,180	889,878	889,577	960,103	1,009,840	1,009,600	1,069,350	862,778	874,284	888,541	934,463	974,594
Total stockholders’ equity	US$ in thousands	1,351,780	1,374,650	1,470,070	1,461,590	1,443,290	1,434,760	1,459,420	1,411,270	1,411,930	1,425,130	1,413,370	1,372,990	1,351,490	1,336,490	1,320,610	1,263,430	1,293,330	1,294,270	1,267,930	1,258,270
Return on total capital		8.07%	8.71%	12.81%	13.92%	13.25%	12.74%	13.39%	13.13%	14.24%	14.53%	14.86%	10.27%	6.99%	6.97%	6.54%	11.80%	12.74%	12.41%	11.38%	10.43%

December 31, 2023 calculation

Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $193,716K ÷ ($1,048,140K + $1,351,780K)
= 8.07%

Return on total capital is a key financial ratio that indicates the efficiency with which a company generates profits from its total capital employed. Flowers Foods Inc's return on total capital has exhibited some fluctuations over the periods indicated in the table. The ratio ranged from a low of 6.54% in April 2020 to a high of 14.86% in April 2021, showing variability in the company's ability to generate returns on its total capital.

Overall, Flowers Foods Inc's return on total capital has generally been positive, indicating that the company has been able to generate reasonable returns on the capital invested in its operations. The ratio has mostly been above 10% in recent periods, suggesting that Flowers Foods Inc has been efficient in utilizing its total capital to generate profits for its shareholders.

Investors and analysts typically consider a higher return on total capital as a positive sign of financial performance, as it demonstrates the company's ability to efficiently allocate capital and generate profits. However, it is essential to monitor any significant deviations in the ratio over time to assess the company's long-term sustainability and profitability.