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.