Flowers Foods Inc (FLO)

Solvency ratios

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
Debt-to-assets ratio 0.31 0.30 0.31 0.31 0.27 0.27 0.27 0.27 0.27 0.27 0.27 0.29 0.30 0.30 0.31 0.27 0.27 0.28 0.29 0.34
Debt-to-capital ratio 0.44 0.43 0.42 0.42 0.38 0.38 0.38 0.39 0.39 0.38 0.39 0.41 0.43 0.43 0.45 0.41 0.40 0.41 0.42 0.44
Debt-to-equity ratio 0.78 0.75 0.73 0.73 0.62 0.62 0.61 0.63 0.63 0.62 0.63 0.70 0.75 0.76 0.81 0.68 0.68 0.69 0.74 0.77
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

Flowers Foods Inc's solvency ratios provide insight into the company's ability to meet its financial obligations over the long term. The debt-to-assets ratio has remained relatively stable around 0.27 to 0.31 over the past few quarters, indicating that about 27% to 31% of the company's assets are financed by debt.

The debt-to-capital ratio, which includes both debt and equity in the capital structure, shows a similar trend with values ranging from 0.38 to 0.45. This indicates that debt accounts for around 38% to 45% of the company's total capital.

The debt-to-equity ratio reflects the proportion of debt and equity in the company's capital structure. Flowers Foods Inc's debt-to-equity ratio has fluctuated between 0.61 and 0.81, suggesting that the company has maintained a higher level of debt relative to equity, with debt representing 61% to 81% of the total equity.

Lastly, the financial leverage ratio, which measures the company's total assets relative to its equity, has ranged from 2.26 to 2.58. This ratio indicates that the company is leveraging its equity to finance its assets, with values above 1 suggesting a higher degree of financial risk.

Overall, Flowers Foods Inc's solvency ratios demonstrate a consistent reliance on debt in its capital structure, which may pose potential risks in terms of financial stability and debt servicing capabilities. Monitoring these ratios over time can provide valuable insights into the company's solvency position and financial risk exposure.

Coverage ratios

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
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

Interest coverage is a key financial ratio that measures a company's ability to pay its interest expenses on outstanding debt. It is calculated by dividing earnings before interest and taxes (EBIT) by the total interest expense. A higher interest coverage ratio indicates a company's strong ability to meet its interest obligations.

In the case of Flowers Foods Inc, the interest coverage ratio has shown some fluctuation over the past few years. From 2018 to 2023, Flowers Foods Inc's interest coverage ratio has generally been above 5, indicating a solid ability to cover its interest expenses. The company's interest coverage ratio ranged from a low of 4.11 in April 2020 to a high of 10.96 in April 2022.

Overall, Flowers Foods Inc's interest coverage ratio has remained relatively stable and comfortably above 5 in recent years, reflecting the company's ability to generate sufficient earnings to cover its interest costs. This demonstrates a healthy financial position and suggests that Flowers Foods Inc has the capacity to meet its debt obligations through its operational earnings.