Fresh Del Monte Produce Inc (FDP)
Payables turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 3,922,300 | 3,970,000 | 4,102,100 | 3,948,200 | 3,951,400 |
| Payables | US$ in thousands | 250,500 | 279,500 | 325,400 | 350,400 | 295,400 |
| Payables turnover | 15.66 | 14.20 | 12.61 | 11.27 | 13.38 |
December 31, 2024 calculation
Payables turnover = Cost of revenue ÷ Payables
= $3,922,300K ÷ $250,500K
= 15.66
The payables turnover ratio for Fresh Del Monte Produce Inc has shown a fluctuating trend over the past five years. In 2020, the payables turnover was 13.38, indicating that the company was able to convert its accounts payables into cash 13.38 times during that year.
In 2021, the payables turnover decreased to 11.27, suggesting a slower rate of conversion of payables into cash. However, the ratio improved in 2022 to 12.61, indicating a better efficiency in managing payables.
The payables turnover ratio continued to increase in 2023 to 14.20, showing that the company was more effectively converting its accounts payables into cash. Furthermore, in 2024, the ratio reached 15.66, reflecting a further enhancement in the efficiency of managing payables.
Overall, the increasing trend in the payables turnover ratio for Fresh Del Monte Produce Inc indicates a better utilization of its accounts payables and potentially improved liquidity and working capital management over the years.
Peer comparison
Dec 31, 2024