Fresh Del Monte Produce Inc (FDP)
Payables 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 |
| Payables | US$ in thousands | 279,500 | 325,400 | 350,400 | 295,400 | 308,600 |
| Payables turnover | 14.20 | 12.61 | 11.27 | 13.38 | 13.55 |
December 31, 2023 calculation
Payables turnover = Cost of revenue ÷ Payables
= $3,970,000K ÷ $279,500K
= 14.20
The payables turnover ratio for Fresh Del Monte Produce Inc has shown a positive trend over the past five years, indicating a consistent improvement in the efficiency of managing its accounts payables. The company's ability to pay off its suppliers has increased from 13.55 times in 2019 to 14.20 times in 2023. This suggests that Fresh Del Monte is able to pay its suppliers more frequently within a shorter time frame, reflecting strong liquidity and effective cash management. The increasing trend in payables turnover ratio indicates that the company is effectively managing its trade credit obligations, which can lead to better supplier relationships and potential discounts for early payments. Overall, the improving payables turnover ratio is a positive indicator of Fresh Del Monte Produce Inc's financial health and operational efficiency.
Peer comparison
Dec 31, 2023