Bunge Limited (BG)

Short-term

Turnover ratios

Based on the provided data for Bunge Limited, let's analyze the activity ratios:

1. Inventory Turnover: This ratio indicates how many times the company's inventory is sold and replaced over a specific period. Bunge Limited's inventory turnover has fluctuated over the years, ranging from a low of 4.81 to a high of 7.85. A higher inventory turnover generally indicates that the company is efficiently managing its inventory levels.

2. Receivables Turnover: Unfortunately, data for receivables turnover is missing from the information provided. This ratio would show how efficiently the company collects payments from its customers.

3. Payables Turnover: Similar to receivables turnover, data for payables turnover is not available. This ratio would have revealed how long it takes for the company to pay its suppliers.

4. Working Capital Turnover: This ratio measures how effectively the company is utilizing its working capital to generate sales. Bunge Limited's working capital turnover has shown variability, from a low of 6.23 to a peak of 13.12, indicating fluctuations in the efficiency of working capital utilization.

In conclusion, while the inventory turnover ratios suggest fluctuations in inventory management efficiency, the lack of data for receivables and payables turnover limits a comprehensive analysis of Bunge Limited's overall activity ratios. The working capital turnover ratios indicate varying levels of efficiency in utilizing working capital over the periods provided.

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Average number of days

Based on the provided data for Bunge Limited, let's analyze the activity ratios:

1. Days of Inventory on Hand (DOH):
- Bunge Limited's DOH fluctuated during the period, ranging from a low of 46.48 days to a high of 75.90 days.
- The company's DOH shows a somewhat erratic pattern over time, with an overall increasing trend followed by some fluctuations.
- A lower DOH indicates that inventory is being sold more quickly, whereas a higher DOH suggests that inventory turnover is slower.
- Bunge should monitor its DOH closely to manage inventory efficiently and avoid overstocking.

2. Days of Sales Outstanding (DSO):
- The data does not provide information on DSO for Bunge Limited.
- DSO is a measure of how long it takes for a company to collect revenue after a sale is made.
- Without DSO data, it is challenging to assess Bunge's efficiency in collecting receivables from customers.

3. Number of Days of Payables:
- The data does not include information on the number of days of payables for Bunge Limited.
- The days of payables measure how long it takes a company to pay its suppliers for goods or services received.
- Without this data, we cannot evaluate Bunge's ability to manage its payables effectively.

In conclusion, while the Days of Inventory on Hand (DOH) data indicates some fluctuations in Bunge Limited's inventory management efficiency, the lack of information on Days of Sales Outstanding (DSO) and Number of Days of Payables limits a comprehensive assessment of the company's overall activity ratios. Monitoring and improving inventory turnover, receivables collection, and payables management are crucial for enhancing operational efficiency and working capital management.

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Long-term

The Fixed Asset Turnover ratio for Bunge Limited has shown a fluctuating trend over the past several years, ranging from a low of 10.54 in March 2020 to a high of 18.66 in June 2022. This indicates the efficiency of the company in generating sales revenue from its fixed assets, with higher ratios generally being more favorable.

On the other hand, the Total Asset Turnover ratio has also varied, but to a lesser extent, fluctuating between 1.75 in December 2020 and 2.74 in December 2022. This ratio measures Bunge's ability to generate sales from all of its assets, including both fixed and current assets.

Overall, a higher Fixed Asset Turnover ratio signifies better utilization of fixed assets to generate sales, while a higher Total Asset Turnover ratio indicates efficient utilization of all assets to generate revenue. Bunge's performance in these ratios should be evaluated in conjunction with industry benchmarks and historical data to assess the company's operational efficiency and resource management over time.