Deere & Company (DE)

Short-term

Turnover ratios

Based on the activity ratios provided for Deere & Company, let's analyze each ratio:

1. Inventory Turnover:
- The inventory turnover ratio measures how effectively a company is managing its inventory. In this case, Deere & Company's inventory turnover has fluctuated over the years, ranging from a low of 0.63 to a high of 4.65. A higher inventory turnover indicates that inventory is selling quickly, which is generally considered positive for a company. The significant change from 0.63 to 4.65 between October 29, 2023, and October 31, 2023, may suggest improved inventory management efficiency.

2. Receivables Turnover:
- The receivables turnover ratio reflects how efficiently a company is collecting its accounts receivable. The data provided shows that Deere & Company's receivables turnover was not reported (represented as "—") for the periods specified. This could be due to various reasons such as the company not providing the necessary information or having minimal receivables turnover activity during those periods.

3. Payables Turnover:
- The payables turnover ratio evaluates how quickly a company pays its suppliers. Similar to receivables turnover, the data indicates that Deere & Company's payables turnover was also not reported (represented as "—") for the specified periods. This lack of information makes it challenging to assess the company's payment practices and supplier relationship management based on this ratio.

4. Working Capital Turnover:
- The working capital turnover ratio assesses how efficiently a company is utilizing its working capital to generate sales revenue. Deere & Company's working capital turnover has varied significantly, with a notable increase from 5.55 in October 31, 2023, to 60.42 in October 27, 2024. Such a sharp spike may indicate a substantial change in the company's working capital management practices or sales activity efficiency during that period.

In conclusion, while the inventory turnover ratio provides insights into Deere & Company's inventory management efficiency, the lack of data for receivables and payables turnover hinders a comprehensive analysis of its accounts receivable collection and payment practices. The notable fluctuations in working capital turnover highlight potential shifts in the company's working capital efficiency over the years, pointing towards changing operational dynamics within Deere & Company.

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Average number of days

Based on the provided data, let's analyze Deere & Company's activity ratios:

1. Days of Inventory on Hand (DOH):
- October 31, 2022: 87.22 days
- October 29, 2023: 575.54 days
- October 31, 2023: 78.50 days
- October 27, 2024: 449.94 days
- October 31, 2024: 84.70 days

The Days of Inventory on Hand measures how many days it takes for the company to sell its inventory. A lower number is generally favorable as it indicates efficient inventory management. Deere & Company showed fluctuations in this ratio over the years, with significant increases in 2023 and 2024 compared to 2022.

2. Days of Sales Outstanding (DSO):
- October 31, 2022: Not provided
- October 29, 2023: Not provided
- October 31, 2023: Not provided
- October 27, 2024: Not provided
- October 31, 2024: Not provided

The Days of Sales Outstanding ratio reflects how long it takes for the company to collect revenue from sales. Without the data for DSO, it is challenging to assess the efficiency of Deere & Company in collecting its accounts receivable.

3. Number of Days of Payables:
- October 31, 2022: Not provided
- October 29, 2023: Not provided
- October 31, 2023: Not provided
- October 27, 2024: Not provided
- October 31, 2024: Not provided

The Number of Days of Payables ratio shows how long the company takes to pay its suppliers. Without the data provided, it is difficult to gauge Deere & Company's payment practices and relationships with its suppliers.

In conclusion, based on the available information, it appears that Deere & Company experienced fluctuations in its inventory management efficiency over the years, but further data on sales outstanding and payables is required for a comprehensive analysis of its overall activity ratios.

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Long-term

The fixed asset turnover ratio measures how efficiently a company is utilizing its fixed assets to generate revenue. Looking at the data provided for Deere & Company, we observe that the fixed asset turnover ratio has been quite high, indicating efficient utilization of fixed assets for revenue generation. The ratio increased from 8.52 in October 2022 to 8.86 in October 2023, suggesting an improving efficiency in asset utilization during this period. However, there was a slight decline in the ratio to 8.41 in October 2023 and a more significant decrease to 6.94 in October 2024, which may indicate a potential decrease in the productivity of fixed assets in generating revenue in the most recent period.

On the other hand, the total asset turnover ratio reflects how well a company is using all its assets to generate sales. In the case of Deere & Company, the total asset turnover ratio has been relatively low. The ratio increased from 0.57 in October 2022 to 0.59 in October 2023, indicating a slightly more efficient use of total assets to generate revenue. However, there was a subsequent decline in the ratio to 0.58 in October 2023 and a further decrease to 0.47 in October 2024. This downward trend suggests a decreasing efficiency in utilizing total assets to generate sales over the specified periods.

In summary, while the fixed asset turnover ratio of Deere & Company has shown variability but remained relatively high, indicating effective utilization of fixed assets, the total asset turnover ratio has experienced a declining trend, reflecting a decrease in the efficiency of using all assets to generate sales over the periods analyzed.