Fresh Del Monte Produce Inc (FDP)
Days of sales outstanding (DSO)
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Receivables turnover | 8.35 | 9.05 | 8.62 | 8.13 | 8.21 | 9.38 | 8.46 | 8.61 | 8.81 | 10.00 | — | — | 8.93 | — | — | — | 9.66 | 10.22 | 9.68 | 9.25 | |
| DSO | days | 43.69 | 40.32 | 42.36 | 44.92 | 44.43 | 38.93 | 43.13 | 42.41 | 41.43 | 36.50 | — | — | 40.87 | — | — | — | 37.80 | 35.71 | 37.71 | 39.45 |
December 31, 2024 calculation
DSO = 365 ÷ Receivables turnover
= 365 ÷ 8.35
= 43.69
The Days Sales Outstanding (DSO) is a measure of how long it takes a company to collect payment from its customers after making a sale. A lower DSO generally indicates that the company is collecting its accounts receivable more quickly, which is positive as it implies faster cash conversion.
Based on the provided data for Fresh Del Monte Produce Inc, the trend in DSO over the specified periods shows some fluctuations. From March 31, 2020, to December 31, 2020, the DSO remained relatively stable, ranging between 35.71 days and 39.45 days. An improvement in DSO was observed at the end of September 2020, which reached 35.71 days.
However, there was a slight uptick in DSO to 37.80 days by December 31, 2020. Throughout 2021, there is missing data indicated by "— days," which may indicate that the company did not report this metric at those particular points in time or the data is unavailable.
The DSO increased to 40.87 days by the end of December 31, 2021, showing a delay in the collection of accounts receivable. The trend continued to show increases in the following periods, reaching 44.92 days by March 31, 2024.
In the later periods, there is a fluctuation in DSO, with some periods showing slight improvements. For instance, the DSO decreased to 40.32 days on September 30, 2024, before rising again to 43.69 days by December 31, 2024.
Overall, the analysis of Fresh Del Monte Produce Inc's DSO suggests that the company may be facing challenges in efficiently collecting payments from customers, as the metric has shown an increasing trend in recent periods. This rising DSO could potentially indicate increased credit risk or challenges in managing accounts receivable, requiring closer scrutiny and potential remedial actions to optimize cash flows and working capital management.
Peer comparison
Dec 31, 2024