Fresh Del Monte Produce Inc (FDP)

Short-term

Turnover ratios

Fresh Del Monte Produce Inc's inventory turnover ratio has fluctuated over the periods analyzed, ranging from a high of 8.15 in June 2020 to a low of 6.13 in December 2022. This ratio indicates how efficiently the company manages its inventory, with a higher ratio generally being more favorable.

The receivables turnover ratio, which measures how quickly the company collects its receivables, also shows variability. The ratio ranged from a high of 10.22 in September 2020 to a low of 8.13 in March 2024. A higher ratio is generally preferred as it signifies faster collection of receivables.

Payables turnover data is limited, with information only available for December 2020, December 2022, and December 2023. The ratios for these periods were 13.38, 12.61, and 14.20, respectively. A higher payables turnover ratio suggests that the company is taking longer to pay its suppliers, potentially indicating more favorable credit terms.

Lastly, the working capital turnover ratio, which measures the efficiency of the company's use of working capital in generating sales, also shows fluctuations. The ratio varied from 9.59 in September 2020 to 6.78 in March 2024. A higher ratio indicates that the company is effectively using its working capital to drive sales.

Overall, these activity ratios provide insights into Fresh Del Monte Produce Inc's efficiency in managing its inventory, receivables, payables, and working capital over the periods analyzed.

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Average number of days

Based on the provided data, we can analyze the activity ratios of Fresh Del Monte Produce Inc as follows:

1. Days of Inventory on Hand (DOH):
- The company's average days of inventory on hand have fluctuated over the periods, ranging from approximately 44.79 days to 59.53 days.
- A higher number of days of inventory on hand may indicate slower inventory turnover, tying up cash in unsold goods.
- The increasing trend observed from March 31, 2020, to December 31, 2024, suggests the company may be facing challenges in managing its inventory efficiently.

2. Days of Sales Outstanding (DSO):
- The data reveals varying days of sales outstanding, ranging from around 35.71 days to 44.92 days.
- Days of sales outstanding measure how long it takes for the company to collect revenue after a sale, indicating its efficiency in collecting accounts receivable.
- The missing values for some periods may signify changes in reporting practices or data availability.
- There is a general upward trend in DSO from September 30, 2022, to December 31, 2024, which could highlight potential challenges in collecting receivables promptly.

3. Number of Days of Payables:
- The company's number of days of payables is presented as a decreasing trend, ranging from approximately 23.31 days to 32.39 days.
- This ratio reflects how long the company takes to pay its suppliers, with a lower number of days indicating more rapid payment.
- Notably, there are missing values for various periods, possibly due to different payment terms or reporting considerations.
- The declining trend in the number of days of payables suggests the company may be paying its suppliers quicker over the observed periods.

In summary, Fresh Del Monte Produce Inc's activity ratios indicate potential challenges in managing inventory levels efficiently and collecting receivables promptly. The decreasing trend in the number of days of payables could also impact the company's working capital management and cash flow.

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Long-term

Fresh Del Monte Produce Inc's fixed asset turnover has been relatively stable over the period from March 31, 2020, to December 31, 2024, ranging from a low of 2.94 to a high of 3.59. This indicates that the company is efficiently utilizing its fixed assets to generate sales.

In contrast, the total asset turnover ratio has shown more fluctuations during the same period, with values ranging from 1.22 to 1.38. This suggests that the company's overall asset utilization efficiency has varied, potentially indicating changes in the company's sales and asset base.

Overall, a higher fixed asset turnover ratio compared to the total asset turnover ratio signifies that Fresh Del Monte Produce Inc is more efficient in using its fixed assets to generate revenue than its total assets. This could indicate effective management of its long-term assets to drive sales and profitability.