Fresh Del Monte Produce Inc (FDP)
Receivables turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 4,280,200 | 4,320,700 | 4,442,300 | 4,252,000 | 4,202,300 |
| Receivables | US$ in thousands | 512,400 | 526,000 | 504,200 | 476,100 | 435,200 |
| Receivables turnover | 8.35 | 8.21 | 8.81 | 8.93 | 9.66 |
December 31, 2024 calculation
Receivables turnover = Revenue ÷ Receivables
= $4,280,200K ÷ $512,400K
= 8.35
The receivables turnover for Fresh Del Monte Produce Inc has exhibited a steady decline over the years from 2020 to 2024. In 2020, the ratio stood at 9.66, indicating that the company collected its accounts receivable approximately 9.66 times during the year. However, by the end of 2024, the receivables turnover had decreased to 8.35, reflecting a reduction in the efficiency of collecting receivables.
A decreasing trend in receivables turnover may suggest that Fresh Del Monte Produce Inc is taking longer to collect payments from its customers, which can potentially lead to cash flow challenges and an increase in the risk of bad debts. It is crucial for the company to monitor and improve its accounts receivable collection process to maintain healthy cash flows and liquidity. Additionally, a lower receivables turnover could indicate potential issues with credit policies, customer creditworthiness, or the company's industry-specific factors that may be affecting their collection cycle.
Peer comparison
Dec 31, 2024