Flowers Foods Inc (FLO)
Debt-to-capital 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 stockholders’ equity | US$ in thousands | 1,351,780 | 1,443,290 | 1,411,270 | 1,372,990 | 1,263,430 |
| Debt-to-capital ratio | 0.44 | 0.38 | 0.39 | 0.41 | 0.41 |
December 31, 2023 calculation
Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $1,048,140K ÷ ($1,048,140K + $1,351,780K)
= 0.44
The debt-to-capital ratio of Flowers Foods Inc has shown a fluctuating trend over the past five years. In 2023, the ratio has increased to 0.44 from 0.38 in 2022, indicating a higher level of debt relative to total capital. This suggests that the company may be relying more on debt financing as a source of capital in 2023, which could potentially increase its financial risk.
Compared to the ratios in the previous years, the current 2023 ratio of 0.44 is higher than the ratios in 2021, 2020, and 2019 (0.39, 0.41, and 0.41 respectively). This could imply either a deliberate strategic shift towards more debt utilization or a result of financial circumstances that necessitated increased borrowing.
It is noteworthy that the debt-to-capital ratio of Flowers Foods Inc has exceeded 0.4 for the first time in the past five years, indicating a higher debt proportion in the company's capital structure. This implies a higher financial leverage in 2023 compared to the previous years, which may require closer monitoring to ensure the company's financial stability and ability to meet its debt obligations going forward.
Peer comparison
Dec 31, 2023