Flowers Foods Inc (FLO)

Debt-to-assets ratio

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Long-term debt	US$ in thousands	1,048,140	891,842	890,609	960,103	862,778
Total assets	US$ in thousands	3,426,950	3,312,990	3,253,310	3,323,020	3,177,780
Debt-to-assets ratio		0.31	0.27	0.27	0.29	0.27

December 31, 2023 calculation

Debt-to-assets ratio = Long-term debt ÷ Total assets
= $1,048,140K ÷ $3,426,950K
= 0.31

The debt-to-assets ratio for Flowers Foods Inc has shown some fluctuations over the past five years. In 2023, the ratio increased to 0.31 from 0.27 in the previous year, indicating that the company had a higher proportion of debt relative to its total assets. This increase in the debt-to-assets ratio may suggest that Flowers Foods has taken on more debt compared to its asset base in 2023.

When compared to the ratios in 2021, 2020, and 2019, where the ratio was consistently around 0.27 to 0.29, the higher ratio in 2023 stands out as a deviation from the trend. This could imply that the company's leverage position shifted in 2023, potentially due to increased borrowing or changes in the asset structure.

Overall, monitoring the debt-to-assets ratio is crucial for assessing Flowers Foods' financial risk and leverage levels, as it provides insights into the company's ability to cover its debt obligations with its assets. The increase in the ratio in 2023 warrants further investigation into the factors driving this change and the potential implications for the company's financial stability and risk management strategies.