Flowers Foods Inc (FLO)
Financial leverage ratio
| Dec 31, 2023 | Oct 7, 2023 | Jul 15, 2023 | Apr 22, 2023 | Dec 31, 2022 | Oct 8, 2022 | Apr 23, 2022 | Dec 31, 2021 | Oct 9, 2021 | Jul 17, 2021 | Apr 24, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jul 11, 2020 | Apr 18, 2020 | Dec 31, 2019 | Oct 5, 2019 | Jul 13, 2019 | Apr 20, 2019 | Dec 31, 2018 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 3,426,950 | 3,434,640 | 3,505,840 | 3,481,870 | 3,312,990 | 3,343,310 | 3,332,340 | 3,253,310 | 3,323,400 | 3,325,930 | 3,272,020 | 3,323,020 | 3,385,470 | 3,398,790 | 3,413,070 | 3,177,780 | 3,209,430 | 3,219,790 | 3,239,330 | 2,845,540 |
| Total stockholders’ equity | US$ in thousands | 1,351,780 | 1,374,650 | 1,470,070 | 1,461,590 | 1,443,290 | 1,434,760 | 1,459,420 | 1,411,270 | 1,411,930 | 1,425,130 | 1,413,370 | 1,372,990 | 1,351,490 | 1,336,490 | 1,320,610 | 1,263,430 | 1,293,330 | 1,294,270 | 1,267,930 | 1,258,270 |
| Financial leverage ratio | 2.54 | 2.50 | 2.38 | 2.38 | 2.30 | 2.33 | 2.28 | 2.31 | 2.35 | 2.33 | 2.32 | 2.42 | 2.50 | 2.54 | 2.58 | 2.52 | 2.48 | 2.49 | 2.55 | 2.26 |
December 31, 2023 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $3,426,950K ÷ $1,351,780K
= 2.54
The financial leverage ratio of Flowers Foods Inc has shown some fluctuations over the past years, ranging from a low of 2.26 to a high of 2.58. Generally, the financial leverage ratio has been hovering around the 2.3 to 2.5 range, indicating that the company relies more on debt to finance its operations than equity. A financial leverage ratio above 1 indicates that the company has more debt than equity in its capital structure.
The increasing trend observed in the financial leverage ratio from 2.26 in December 2018 to 2.58 in April 2020 suggests that the company may have taken on more debt during this period. However, the ratio has slightly declined and fluctuated around the 2.3 to 2.5 range in recent years, indicating potential efforts to manage and stabilize the company's debt levels.
Overall, the financial leverage ratio provides insights into Flowers Foods Inc's capital structure and its ability to meet its financial obligations. It is important for investors and stakeholders to closely monitor changes in this ratio, as high levels of leverage can pose risks, especially during economic downturns or volatile market conditions.
Peer comparison
Dec 31, 2023