Fresh Del Monte Produce Inc (FDP)
Days of inventory on hand (DOH)
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Inventory turnover | 6.59 | 6.62 | 6.13 | 6.55 | 7.78 | |
| DOH | days | 55.40 | 55.15 | 59.53 | 55.73 | 46.90 |
December 31, 2024 calculation
DOH = 365 ÷ Inventory turnover
= 365 ÷ 6.59
= 55.40
The days of inventory on hand (DOH) for Fresh Del Monte Produce Inc has increased over the years from 46.90 days at the end of December 31, 2020, to 55.73 days on December 31, 2021. Subsequently, there was a further increase in DOH to 59.53 days by December 31, 2022. The DOH then decreased slightly to 55.15 days by December 31, 2023, before rising again to 55.40 days by December 31, 2024.
The increasing trend in DOH indicates that Fresh Del Monte Produce Inc may be facing challenges in managing its inventory efficiently. A higher DOH value suggests that the company is taking longer to sell its inventory, which can tie up capital, increase storage costs, and potentially lead to obsolescence. Fresh Del Monte Produce Inc may need to review its inventory management practices to ensure optimal inventory turnover and reduce the risk of holding excess inventory levels.
Peer comparison
Dec 31, 2024