Flowers Foods Inc (FLO)
Financial leverage ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 3,400,450 | 3,426,950 | 3,312,990 | 3,253,310 | 3,323,020 |
| Total stockholders’ equity | US$ in thousands | 1,410,110 | 1,351,780 | 1,443,290 | 1,411,270 | 1,372,990 |
| Financial leverage ratio | 2.41 | 2.54 | 2.30 | 2.31 | 2.42 |
December 31, 2024 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $3,400,450K ÷ $1,410,110K
= 2.41
The financial leverage ratio of Flowers Foods Inc has shown fluctuations over the past five years. The ratio decreased from 2.42 in 2020 to 2.31 in 2021, indicating a reduction in the company's reliance on debt to finance its operations. This downward trend continued in 2022 with a ratio of 2.30, suggesting improved financial stability and potentially lower financial risk.
However, there was a notable increase in the financial leverage ratio in 2023, climbing to 2.54. This could be indicative of a higher level of debt relative to equity in the company's capital structure, potentially increasing financial risk.
The ratio decreased again in 2024 to 2.41, although it remained slightly higher than in 2020. Overall, monitoring the financial leverage ratio is crucial for understanding how Flowers Foods Inc is utilizing debt to support its growth and operations while managing financial risk.
Peer comparison
Dec 31, 2024