Bunge Limited (BG)

Short-term

Turnover ratios

Based on the provided data on Bunge Limited's activity ratios, here is an analysis of each ratio:

1. Inventory Turnover:
- Bunge Limited's inventory turnover has been increasing steadily over the years, indicating that the company is selling its inventory more efficiently.
- The inventory turnover ratio has shown a positive trend from 5.38 in 2020 to 7.66 in 2024, suggesting that the company is managing its inventory well and converting it into sales at a faster rate each year.

2. Receivables Turnover:
- The data shows that Bunge Limited's receivables turnover is not provided (indicated as "—").
- Without information on receivables turnover, it is challenging to assess how quickly the company is collecting outstanding receivables from its customers.

3. Payables Turnover:
- Similar to receivables turnover, payables turnover information is not available in the data provided, making it difficult to evaluate how efficiently the company is managing its payables.

4. Working Capital Turnover:
- Bunge Limited's working capital turnover has fluctuated over the years, with a peak in 2022 and a decline in 2024.
- A working capital turnover ratio above 1 indicates efficient utilization of working capital to generate sales. However, a declining trend could suggest challenges in converting working capital into revenue in the most recent year, which warrants further investigation.

Overall, while the inventory turnover ratio demonstrates improved efficiency in managing inventory, the lack of information on receivables and payables turnover limits the comprehensive assessment of Bunge Limited's overall efficiency in managing its working capital and operating cycle. Further analysis and additional data would be needed to provide a more holistic view of the company's activity ratios and operational performance.

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Average number of days

Bunge Limited's activity ratios, specifically the Days of Inventory on Hand (DOH), have shown a decreasing trend over the years, indicating more efficiency in managing inventory levels. As of December 31, 2020, the company had 67.78 days of inventory on hand, which decreased to 47.66 days by December 31, 2024.

In contrast, the Days of Sales Outstanding (DSO) and Number of Days of Payables data are not available for the period provided, which limits a comprehensive analysis of the company's accounts receivable and accounts payable management efficiency.

Overall, the decreasing trend in the Days of Inventory on Hand ratio suggests that Bunge Limited has been successful in optimizing its inventory levels and improving its operational efficiency in inventory management over the years.

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Long-term

Based on the provided data, we can make several observations regarding Bunge Limited's long-term activity ratios.

1. Fixed Asset Turnover:
- The Fixed Asset Turnover ratio indicates how efficiently the company is using its fixed assets to generate revenue.
- From 2020 to 2024, Bunge Limited's Fixed Asset Turnover ratio has shown a consistent upward trend, increasing from 10.97 to 14.49.
- This indicates that Bunge Limited has improved its efficiency in generating revenue from its fixed assets over the years. A higher ratio suggests that the company is generating more sales per dollar invested in fixed assets.

2. Total Asset Turnover:
- The Total Asset Turnover ratio measures how efficiently the company is utilizing all its assets to generate revenue.
- Bunge Limited's Total Asset Turnover ratio experienced fluctuations over the years but generally showed an increasing trend.
- The ratio increased from 1.75 in 2020 to 2.13 in 2024, indicating that the company is generating more revenue per dollar of assets employed.
- A higher Total Asset Turnover ratio suggests improved efficiency in asset utilization and revenue generation for Bunge Limited.

In summary, Bunge Limited has demonstrated improved efficiency in utilizing both fixed assets and total assets to generate revenue over the period from 2020 to 2024, as indicated by the increasing trends in both the Fixed Asset Turnover and Total Asset Turnover ratios. This suggests that the company has been successful in optimizing its asset utilization and maximizing revenue generation.