Fresh Del Monte Produce Inc (FDP)
Activity ratios
Short-term
Turnover ratios
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Inventory turnover | 6.62 | 6.13 | 6.55 | 7.78 | 7.58 |
| Receivables turnover | 8.21 | 8.81 | 8.93 | 9.66 | 9.59 |
| Payables turnover | 14.20 | 12.61 | 11.27 | 13.38 | 13.55 |
| Working capital turnover | 7.16 | 7.00 | 9.10 | 9.19 | 9.19 |
Fresh Del Monte Produce Inc's activity ratios indicate how effectively the company is managing its resources to generate sales and collect payments.
1. Inventory turnover: The company's inventory turnover has been relatively stable over the past five years, ranging from 6.13 to 7.78 times. A higher inventory turnover ratio signifies that Fresh Del Monte Produce Inc is efficiently selling its inventory and replenishing it quickly.
2. Receivables turnover: Fresh Del Monte Produce Inc's receivables turnover has shown a slight decrease from 9.66 to 8.21 times over the past five years. This decline may signal that the company is taking longer to collect payments from customers, which could impact its cash flow.
3. Payables turnover: The payables turnover ratio has been increasing steadily from 11.27 to 14.20 times, indicating that Fresh Del Monte Produce Inc is taking longer to pay its suppliers. This may suggest improved liquidity or the ability to negotiate better credit terms with its suppliers.
4. Working capital turnover: The working capital turnover ratio has fluctuated over the years but has generally remained high, ranging from 7.00 to 9.19 times. A high working capital turnover ratio indicates that Fresh Del Monte Produce Inc is efficiently utilizing its working capital to generate revenue.
Overall, Fresh Del Monte Produce Inc's activity ratios reflect a mixed performance in managing its assets and liabilities effectively to drive sales and maintain efficient operations.
Average number of days
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 55.15 | 59.53 | 55.73 | 46.90 | 48.15 |
| Days of sales outstanding (DSO) | days | 44.43 | 41.43 | 40.87 | 37.80 | 38.04 |
| Number of days of payables | days | 25.70 | 28.95 | 32.39 | 27.29 | 26.93 |
Fresh Del Monte Produce Inc's activity ratios provide insights into the efficiency of the company's operations.
- Days of Inventory on Hand (DOH): The trend in DOH shows a fluctuating pattern over the years. In 2023, the company held inventory for approximately 55.15 days before selling it, which is a slight improvement from 2022 and 2018. This indicates that the company is managing its inventory more effectively.
- Days of Sales Outstanding (DSO): The DSO has been gradually increasing over the years, with the company taking approximately 44.43 days to collect its accounts receivable in 2023. This could imply that the company is experiencing challenges in collecting payments from its customers promptly, which might impact its cash flow.
- Number of Days of Payables: Fresh Del Monte Produce Inc's number of days of payables has shown a declining trend in recent years, suggesting that the company is paying its suppliers more quickly. In 2023, the company took approximately 25.7 days to pay its suppliers, indicating a more stringent payment policy compared to previous years.
Overall, Fresh Del Monte Produce Inc should continue to monitor its activity ratios to ensure efficient management of its working capital and improve its overall operational performance.
Long-term
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Fixed asset turnover | 3.44 | 3.39 | 3.00 | 2.96 | 3.20 |
| Total asset turnover | 1.36 | 1.28 | 1.25 | 1.29 | 1.34 |
The fixed asset turnover ratio for Fresh Del Monte Produce Inc has shown a generally increasing trend over the past five years, indicating that the company is generating more sales revenue per dollar of fixed assets invested. This improvement suggests better utilization of the company's fixed assets to generate sales.
On the other hand, the total asset turnover ratio has fluctuated slightly over the same period but has remained relatively stable. This indicates that the company is able to generate revenue efficiently from its total assets.
Overall, the long-term activity ratios suggest that Fresh Del Monte Produce Inc has been effectively managing its assets to generate revenue, with a particularly positive trend in the utilization of fixed assets for sales generation.