Deere & Company (DE)
Activity ratios
Short-term
Turnover ratios
| Oct 27, 2024 | Jul 28, 2024 | Apr 28, 2024 | Jan 28, 2024 | Oct 29, 2023 | Jul 30, 2023 | Apr 30, 2023 | Jan 29, 2023 | Oct 30, 2022 | Jul 31, 2022 | May 1, 2022 | Jan 30, 2022 | Oct 31, 2021 | Aug 1, 2021 | May 2, 2021 | Jan 31, 2021 | Nov 1, 2020 | Aug 2, 2020 | May 3, 2020 | Feb 2, 2020 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Inventory turnover | 0.78 | 0.71 | 0.63 | 0.60 | 0.63 | 0.55 | 0.51 | 0.46 | 0.53 | 0.41 | 0.40 | 0.44 | 0.52 | 1.58 | 2.67 | 3.80 | 5.59 | 5.01 | 4.76 | 4.76 |
| Receivables turnover | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Payables turnover | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Working capital turnover | 60.42 | — | — | — | — | — | — | — | 77.66 | — | 92.51 | 31.39 | 11.35 | 12.04 | 12.02 | 2.87 | 2.95 | 7.49 | 2.44 | 3.86 |
Based on the activity ratios of Deere & Company:
1. Inventory turnover: The inventory turnover ratio has been fluctuating over the periods, with a general decreasing trend. This indicates that Deere & Company is taking longer to sell its inventory. However, the ratio has improved slightly in the most recent periods compared to earlier periods where it was quite low.
2. Receivables turnover: Unfortunately, there is no data available for the receivables turnover ratio, so it is not possible to analyze how quickly Deere & Company is collecting on its receivables.
3. Payables turnover: Similarly, there is no data available for the payables turnover ratio, which would have indicated how efficiently Deere & Company is managing its accounts payable.
4. Working capital turnover: The working capital turnover ratio shows a significant fluctuation over the periods, indicating inconsistent utilization of working capital in generating sales. There are periods of high turnover, suggesting efficient use of working capital, but there are also periods of low turnover, indicating inefficiencies in managing working capital efficiently.
Overall, it is recommended to closely monitor and analyze inventory turnover and working capital turnover to identify areas for improvement in managing inventory and working capital efficiently. Additionally, obtaining data for receivables and payables turnover ratios would provide a more comprehensive understanding of the company's operational efficiency.
Average number of days
| Oct 27, 2024 | Jul 28, 2024 | Apr 28, 2024 | Jan 28, 2024 | Oct 29, 2023 | Jul 30, 2023 | Apr 30, 2023 | Jan 29, 2023 | Oct 30, 2022 | Jul 31, 2022 | May 1, 2022 | Jan 30, 2022 | Oct 31, 2021 | Aug 1, 2021 | May 2, 2021 | Jan 31, 2021 | Nov 1, 2020 | Aug 2, 2020 | May 3, 2020 | Feb 2, 2020 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 469.78 | 512.13 | 579.48 | 605.53 | 582.97 | 662.41 | 708.91 | 799.31 | 682.67 | 881.43 | 904.49 | 822.81 | 695.83 | 231.65 | 136.70 | 96.13 | 65.29 | 72.79 | 76.70 | 76.65 |
| Days of sales outstanding (DSO) | days | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Number of days of payables | days | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
Deere & Company's Days of Inventory on Hand (DOH) fluctuated over the analyzed period, with a high of 904.49 days in Jul 2022 and a low of 65.29 days in Jan 2021. The trend indicates a significant variation in the efficiency of managing inventory levels. The company's DOH values are generally high, suggesting that inventory turnover is relatively slow. This may tie up capital and indicate potential inefficiencies in production or sales forecasting.
Days of Sales Outstanding (DSO) and Number of Days of Payables data are not provided for analysis, limiting a comprehensive evaluation of Deere & Company's overall activity ratios. To gain a complete understanding of the company's liquidity and operational effectiveness, it is essential to consider all three activity ratios together.
Long-term
| Oct 27, 2024 | Jul 28, 2024 | Apr 28, 2024 | Jan 28, 2024 | Oct 29, 2023 | Jul 30, 2023 | Apr 30, 2023 | Jan 29, 2023 | Oct 30, 2022 | Jul 31, 2022 | May 1, 2022 | Jan 30, 2022 | Oct 31, 2021 | Aug 1, 2021 | May 2, 2021 | Jan 31, 2021 | Nov 1, 2020 | Aug 2, 2020 | May 3, 2020 | Feb 2, 2020 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Fixed asset turnover | 6.94 | 7.87 | 8.42 | 9.00 | 8.86 | 9.15 | 9.15 | 8.56 | 7.94 | 7.38 | 7.08 | 6.72 | 5.30 | 6.08 | 5.60 | — | — | 6.27 | 6.48 | 6.59 |
| Total asset turnover | 0.48 | 0.52 | 0.56 | 0.60 | 0.59 | 0.59 | 0.61 | 0.61 | 0.58 | 0.56 | 0.54 | 0.56 | 0.52 | 0.53 | 0.50 | 0.49 | 0.47 | 0.46 | 0.48 | 0.54 |
Deere & Company's long-term activity ratios indicate how efficiently the company is utilizing its assets to generate sales and productivity over an extended period. The fixed asset turnover ratio has shown a consistent upward trend, reaching a peak of 9.15 in the latest reporting period, indicating that the company is generating more sales relative to its fixed assets. This implies that Deere is effectively utilizing its property, plant, and equipment to drive revenue.
On the other hand, the total asset turnover ratio has also displayed an increasing trend, reflecting the company's ability to generate sales in relation to its total assets. Although this ratio is lower than the fixed asset turnover due to the inclusion of other types of assets, it still demonstrates an improvement in asset utilization efficiency. In the latest period, the total asset turnover ratio stood at 0.52, suggesting that Deere is efficiently generating revenue based on its overall asset base.
Overall, the upward trends in both fixed asset turnover and total asset turnover ratios signify Deere & Company's ability to efficiently manage its assets and generate sales, which is a positive indicator of the company's operational performance and effectiveness in utilizing its resources.