Deere & Company (DE)

Short-term

Turnover ratios

Deere & Company's inventory turnover has shown fluctuations over the periods provided, ranging from 1.93 to 3.15. A higher inventory turnover ratio indicates that the company is selling its inventory more efficiently.

The receivables turnover and payables turnover ratios are not available, possibly due to the nature of the company's operations. These ratios are typically used to assess how well a company manages its receivables and payables.

The working capital turnover ratio has also varied, with values ranging from 1.05 to 91.11. A higher working capital turnover ratio indicates that the company is generating more revenue per unit of working capital, which is a positive sign of operational efficiency.

Overall, Deere & Company's inventory turnover and working capital turnover ratios show mixed performance over the periods presented, suggesting the need for further analysis to understand the company's efficiency in managing its resources.

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Average number of days

Based on the activity ratios provided for Deere & Company, we can analyze the following:

1. Days of Inventory on Hand (DOH):
- The days of inventory on hand measure how many days, on average, the inventory is held before it is sold.
- Deere & Company has exhibited fluctuations in its inventory management. For instance, the days of inventory on hand ranged from a high of 189.53 days on May 1, 2022, to a low of 115.92 days on July 31, 2023.
- A decreasing trend in the days of inventory on hand generally indicates efficient inventory management, as products are moving off the shelves faster.

2. Days of Sales Outstanding (DSO):
- The days of sales outstanding ratio is not provided in the data, which indicates that we do not have information on how many days, on average, it takes for the company to collect payments from its customers.
- Inability to assess DSO limits our understanding of Deere & Company's accounts receivable management efficiency.

3. Number of Days of Payables:
- Similar to DSO, the data does not include information on the number of days of payables, preventing an analysis of how long the company takes to pay its suppliers.
- This ratio is crucial as it reflects the company's payment terms and liquidity management.

Overall, while the days of inventory on hand provide insight into Deere & Company's inventory management, the absence of DSO and payable days data limits a comprehensive assessment of the company's working capital management and efficiency in collecting receivables and managing payables.

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Long-term

The fixed asset turnover ratio of Deere & Company illustrates the effectiveness of the company in utilizing its fixed assets to generate revenue. A higher fixed asset turnover ratio indicates that the company is efficiently utilizing its fixed assets to generate sales.

From the provided data, we observe fluctuations in the fixed asset turnover ratio for Deere & Company over the given periods, such as an increase from 6.98 on May 1, 2022, to 9.58 on October 31, 2022, followed by a decrease to 4.39 on January 31, 2023. This variance suggests variations in the company's ability to generate sales relative to its investment in fixed assets.

In comparison, the total asset turnover ratio reflects how well the company utilizes all its assets to generate revenue. A higher total asset turnover ratio indicates that the company efficiently generates sales using its total assets.

Deere & Company's total asset turnover ratio also demonstrates fluctuations over the analyzed periods, with values ranging from 0.42 on January 31, 2025, to 0.64 on October 31, 2022. This variability suggests changes in the company's effectiveness in generating sales in relation to its total asset base.

Overall, analyzing both the fixed asset turnover ratio and total asset turnover ratio provides insights into Deere & Company's operational efficiency and its ability to generate revenue in relation to its investments in fixed and total assets, respectively.