Fresh Del Monte Produce Inc (FDP)
Inventory turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 3,970,000 | 4,102,100 | 3,948,200 | 3,951,400 | 4,182,600 |
| Inventory | US$ in thousands | 599,900 | 669,000 | 602,800 | 507,700 | 551,800 |
| Inventory turnover | 6.62 | 6.13 | 6.55 | 7.78 | 7.58 |
December 31, 2023 calculation
Inventory turnover = Cost of revenue ÷ Inventory
= $3,970,000K ÷ $599,900K
= 6.62
Fresh Del Monte Produce Inc's inventory turnover has fluctuated over the past five years. The company's inventory turnover ratio was 6.62 in 2023, 6.13 in 2022, 6.55 in 2021, 7.78 in 2020, and 7.58 in 2019. The inventory turnover ratio measures how efficiently a company manages its inventory by indicating the number of times the inventory is sold and replaced within a period.
A higher inventory turnover ratio indicates that the company is selling its products quickly and efficiently, which is generally favorable. The declining trend from 2020 to 2022 may suggest challenges in managing inventory levels. However, the increase in 2023 could be a positive sign of improving inventory management.
Overall, Fresh Del Monte Produce Inc's inventory turnover ratios show some variability but generally indicate a reasonable efficiency in managing its inventory levels over the past five years.
Peer comparison
Dec 31, 2023