Fresh Del Monte Produce Inc (FDP)
Receivables turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 4,320,700 | 4,442,300 | 4,252,000 | 4,202,300 | 4,489,000 |
| Receivables | US$ in thousands | 526,000 | 504,200 | 476,100 | 435,200 | 467,900 |
| Receivables turnover | 8.21 | 8.81 | 8.93 | 9.66 | 9.59 |
December 31, 2023 calculation
Receivables turnover = Revenue ÷ Receivables
= $4,320,700K ÷ $526,000K
= 8.21
The receivables turnover ratio for Fresh Del Monte Produce Inc has exhibited a declining trend over the past five years. From 2019 to 2023, the ratio decreased from 9.59 to 8.21.
A higher receivables turnover ratio indicates that the company is able to collect its accounts receivable more efficiently. The declining trend in Fresh Del Monte's receivables turnover ratio may suggest that the company is taking longer to collect payments from customers.
It is important to further investigate the reasons behind this trend, such as changes in credit policies, customer payment behavior, or the overall economic environment affecting the industry. Additionally, a declining receivables turnover ratio could indicate potential liquidity or cash flow challenges for the company. Therefore, management should closely monitor and address any factors contributing to this downward trend to ensure the efficient management of accounts receivable and maintain healthy financial performance.
Peer comparison
Dec 31, 2023