Deere & Company (DE)

Short-term

Turnover ratios

The inventory turnover ratio for Deere & Company has been declining over the past five years, indicating that the company is taking longer to sell its inventory. This could potentially suggest inefficiencies in inventory management or challenges in selling products.

Since there is no data provided for receivables turnover and payables turnover, we are unable to assess the efficiency of the company in collecting receivables or managing payables.

The working capital turnover ratio for Deere & Company has fluctuated significantly over the years, with a notable increase from 2020 to 2022. A high working capital turnover ratio may suggest that the company is effectively managing its working capital to generate sales, while a low ratio may indicate that the company is not efficiently using its working capital to support its operations.

Overall, based solely on the activity ratios provided, Deere & Company may need to focus on improving its inventory turnover and ensuring efficient management of working capital to enhance operational performance and financial efficiency. Additional data on specific turnover ratios would provide a more comprehensive analysis of the company's operational efficiency.

---

Average number of days

Based on the activity ratios of Deere & Company, we can observe the following trends:

1. Days of Inventory on Hand (DOH): The trend of DOH shows a fluctuating pattern over the past five years, with the number of days of inventory on hand varying considerably. In 2020, the company managed its inventory efficiently with only 65.29 days of inventory on hand, which increased significantly in 2021 and continued to rise up to 693.49 days by 2021. However, there was a sharp decrease in 2022 and 2023, reaching the lowest point in the last five years at 449.94 days in 2024. This indicates that Deere & Company might have improved its inventory management in recent years, thus reducing the number of days of inventory on hand.

2. Days of Sales Outstanding (DSO): The data provided does not include information on Days of Sales Outstanding (DSO), which is a key ratio used to analyze how efficient a company is at collecting its accounts receivable. Without this data, we are unable to assess the company's effectiveness in collecting revenue from its customers.

3. Number of Days of Payables: Similarly, the information regarding the Number of Days of Payables is not available in the provided data table. This ratio is crucial for understanding how long a company takes to pay its suppliers and manage its working capital effectively.

In conclusion, while the trend of Days of Inventory on Hand (DOH) for Deere & Company indicates some improvements in inventory management efficiency over the past five years, a comprehensive analysis of the company's activity ratios, including Days of Sales Outstanding (DSO) and Number of Days of Payables, would provide a more complete picture of its operational performance and working capital management.

---

Long-term

Based on the provided data, Deere & Company's long-term activity ratios show the following trends:

1. Fixed Asset Turnover:
- Deere's fixed asset turnover has fluctuated over the past five years, ranging from a low of 5.30 in 2021 to a high of 8.86 in 2023.
- The company's fixed asset turnover indicates how efficiently it is generating sales revenue from its investment in fixed assets such as property, plant, and equipment.
- A higher fixed asset turnover ratio suggests that Deere is effectively utilizing its fixed assets to generate revenue. The decline in 2024 compared to the previous year could indicate a decrease in sales relative to its investment in fixed assets.

2. Total Asset Turnover:
- Deere's total asset turnover has also varied over the five-year period, with a low of 0.47 in 2020 and a high of 0.59 in 2023.
- The total asset turnover ratio reflects how well the company is using its total assets to generate sales.
- A higher total asset turnover ratio indicates that Deere is efficiently utilizing its total assets to generate revenue. The increasing trend from 2020 to 2023 suggests improved efficiency in asset utilization.

Overall, Deere & Company's long-term activity ratios demonstrate fluctuating trends in asset turnover efficiency, with the company showing varying levels of effectiveness in utilizing both fixed and total assets to generate sales revenue over the past five years. Analyzing these ratios over time can provide insights into the company's operational efficiency and asset management strategies.