Flowers Foods Inc (FLO)

Interest coverage

Dec 31, 2024 Sep 30, 2024 Jun 30, 2024 Mar 31, 2024 Dec 31, 2023 Oct 7, 2023 Sep 30, 2023 Jul 15, 2023 Jun 30, 2023 Apr 22, 2023 Mar 31, 2023 Dec 31, 2022 Oct 8, 2022 Sep 30, 2022 Jun 30, 2022 Apr 23, 2022 Mar 31, 2022 Dec 31, 2021 Oct 9, 2021 Sep 30, 2021
Earnings before interest and tax (EBIT) (ttm) US$ in thousands 366,071 355,375 206,422 53,490 39,468 76,212 231,759 379,059 349,779 319,752 274,401 252,328 307,204 369,283 367,603 353,478 295,284 251,617 277,253 326,250
Interest expense (ttm) US$ in thousands 37,129 32,852 32,716 32,290 29,998 30,364 32,649 34,934 26,255 28,805 19,310 9,977 18,505 20,562 20,639 25,805 23,617 21,315 26,452 31,463
Interest coverage 9.86 10.82 6.31 1.66 1.32 2.51 7.10 10.85 13.32 11.10 14.21 25.29 16.60 17.96 17.81 13.70 12.50 11.80 10.48 10.37

December 31, 2024 calculation

Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $366,071K ÷ $37,129K
= 9.86

Flowers Foods Inc's interest coverage ratio, which indicates the company's ability to meet its interest obligations with its earnings, has shown fluctuations over the given period. Starting at 10.37 in September 2021, the interest coverage ratio improved steadily to reach 17.81 in June 2022 and 25.29 by December 2022, indicating a strong ability to cover interest payments comfortably.

However, the ratio saw a decline in the following periods, dropping to 2.51 in October 2023 and further deteriorating to 1.32 by December 2023, suggesting potential challenges in meeting interest expenses based on earnings during those periods. The ratio then fluctuated but overall trended upward, reaching 10.82 by September 2024.

The variations in Flowers Foods Inc's interest coverage ratio highlight the importance of monitoring the company's performance and financial health to ensure it can effectively meet its interest obligations in the long term.