Flowers Foods Inc (FLO)

Debt-to-equity 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-equity ratio		0.78	0.62	0.63	0.70	0.68

December 31, 2023 calculation

Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $1,048,140K ÷ $1,351,780K
= 0.78

The debt-to-equity ratio of Flowers Foods Inc has shown fluctuations over the last five years. In 2023, the ratio increased to 0.78 from 0.62 in 2022, indicating a higher level of debt relative to equity in the company's capital structure. This could suggest increased reliance on debt financing, which may pose higher financial risk for the company.

Comparing to the previous years, the ratio was relatively stable between 2021 and 2022, indicating a balanced mix of debt and equity. However, in 2023, the ratio surpassed the levels seen in 2020 and 2019, suggesting a potential shift in the company's financing strategy towards more debt.

It is important to closely monitor this trend as a higher debt-to-equity ratio could indicate increased financial leverage and potential challenges in meeting debt obligations. Management should assess the implications of this ratio on the company's financial health and sustainability in the long term.