Flowers Foods Inc (FLO)

Based on the provided data, Flowers Foods Inc's solvency ratios indicate a strong financial position with consistently low debt levels relative to its assets, capital, and equity over the period from 2020 to 2024.

- The Debt-to-assets ratio remained at 0.00 throughout the five-year period, indicating that the company had no debt in relation to its total assets. This suggests that Flowers Foods relied more on equity financing rather than debt to fund its operations and investments.

- The Debt-to-capital ratio also stood at 0.00 for the same period, demonstrating the absence of debt in relation to the company's total capital structure, which includes both debt and equity. This further supports the notion that Flowers Foods maintained a conservative approach to leverage.

- The Debt-to-equity ratio remained at 0.00 throughout the period, highlighting the company's ability to finance its operations mainly through equity rather than debt. This is a positive indication of financial stability and lower financial risk.

- The Financial leverage ratio showed a slight fluctuation, ranging from 2.30 to 2.54, but remained relatively stable over the years. This ratio indicates that Flowers Foods utilized debt as a component of its capital structure; however, the levels were moderate and did not pose significant financial risk.

In conclusion, based on the solvency ratios analyzed, Flowers Foods Inc appears to have a solid financial position with low debt levels and a healthy mix of equity in its capital structure, suggesting a conservative and sustainable approach to managing its financial obligations.

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Coverage ratios

Flowers Foods Inc's interest coverage ratio has shown fluctuation over the past five years. As of December 31, 2020, the interest coverage ratio was 19.79, indicating strong ability to cover interest payments with operating income. However, this ratio declined to 9.59 by December 31, 2021, suggesting a decrease in the company's ability to meet its interest obligations from its operating profits.

In the following years, there were improvements in the interest coverage ratio, reaching 11.33 by December 31, 2022. This indicates a better ability to cover interest expenses compared to the previous year. However, by December 31, 2023, the interest coverage ratio dropped significantly to 5.29, suggesting a potential strain on Flowers Foods Inc's ability to cover interest payments with its operating income.

The most recent data as of December 31, 2024, shows a slight improvement in the interest coverage ratio to 9.86. While this is an increase from the previous year, it is still below the levels observed in 2020 and 2022. Overall, the fluctuations in Flowers Foods Inc's interest coverage ratio over the years indicate varying levels of financial stability and ability to meet interest obligations through operating profits.