Fresh Del Monte Produce Inc (FDP)
Working capital 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 |
| Total current assets | US$ in thousands | 1,144,300 | 1,241,400 | 1,096,400 | 1,012,300 | 1,051,500 |
| Total current liabilities | US$ in thousands | 540,600 | 607,000 | 629,200 | 554,800 | 562,900 |
| Working capital turnover | 7.16 | 7.00 | 9.10 | 9.19 | 9.19 |
December 31, 2023 calculation
Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $4,320,700K ÷ ($1,144,300K – $540,600K)
= 7.16
Fresh Del Monte Produce Inc's working capital turnover has shown a fluctuating trend over the past five years. The ratio indicates how efficiently the company is utilizing its working capital to generate sales revenue. A higher working capital turnover ratio is generally favorable as it suggests that the company is effectively managing its working capital and generating more sales with less investment in working capital.
In this case, the working capital turnover ratio has ranged from 7.00 to 9.19 over the five-year period. The peak ratio of 9.19 in 2020 and 2019 suggests that the company was able to generate $9.19 in revenue for every $1 of working capital invested during those years. However, the ratio decreased to 7.00 in 2022, reflecting a less efficient utilization of working capital during that period.
Overall, Fresh Del Monte Produce Inc's working capital turnover has remained relatively high, indicating a generally efficient management of working capital to drive sales. It is essential for the company to monitor this ratio closely to ensure continued efficiency in utilizing its working capital effectively to support revenue generation.
Peer comparison
Dec 31, 2023