Flowers Foods Inc (FLO)

Interest coverage

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Earnings before interest and tax (EBIT)	US$ in thousands	193,716	327,632	302,306	239,501	250,930
Interest expense	US$ in thousands	36,609	28,921	31,534	38,790	38,847
Interest coverage		5.29	11.33	9.59	6.17	6.46

December 31, 2023 calculation

Interest coverage = EBIT ÷ Interest expense
= $193,716K ÷ $36,609K
= 5.29

Interest coverage is a financial ratio that measures a company's ability to pay its interest expenses on outstanding debt. Flowers Foods Inc's interest coverage has fluctuated over the past five years, ranging from 5.29 in 2023 to 11.33 in 2022. The significant drop in 2023 compared to the previous years indicates a potential decrease in the company's ability to cover its interest expenses with its earnings. However, despite the fluctuation, Flowers Foods Inc generally maintains a healthy interest coverage ratio above 1, which suggests that the company is capable of meeting its interest obligations. It is essential for investors and stakeholders to monitor the trend of the interest coverage ratio to assess the company's financial health and ability to handle its debt obligations effectively.