Flowers Foods Inc (FLO)

Interest coverage

		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
Earnings before interest and tax (EBIT) (ttm)	US$ in thousands	193,716	210,056	325,889	351,485	309,352	296,297	314,709	302,306	327,711	336,307	342,220	239,501	165,078	163,417	156,242	250,930	276,050	270,851	250,606	232,847
Interest expense (ttm)	US$ in thousands	36,609	35,080	33,329	33,178	28,968	28,956	28,711	31,534	34,351	36,387	38,832	38,790	37,825	37,824	38,015	38,847	38,664	38,139	37,161	35,686
Interest coverage		5.29	5.99	9.78	10.59	10.68	10.23	10.96	9.59	9.54	9.24	8.81	6.17	4.36	4.32	4.11	6.46	7.14	7.10	6.74	6.52

December 31, 2023 calculation

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

Flowers Foods Inc's interest coverage ratio has shown fluctuations over the periods analyzed. The interest coverage ratio measures the company's ability to pay interest expenses on outstanding debt. A higher interest coverage ratio indicates a stronger ability to meet interest obligations.

Looking at the data, we see that the interest coverage ratio has generally been above 5, indicating that Flowers Foods Inc has been able to cover its interest expenses comfortably. The ratio peaked at 10.96 on Apr 23, 2022, and has generally remained above 9 since then, with a few exceptions.

Fluctuations in the interest coverage ratio can be influenced by various factors such as changes in interest rates, the company's level of debt, and its operating performance. It is important for investors and creditors to monitor this ratio as it provides insights into the financial health and risk profile of Flowers Foods Inc.

Overall, the trend of the interest coverage ratio for Flowers Foods Inc suggests a generally healthy ability to cover interest expenses, with some variability over time.