Fresh Del Monte Produce Inc (FDP)

Liquidity ratios

Dec 31, 2024 Sep 30, 2024 Jun 30, 2024 Mar 31, 2024 Dec 31, 2023 Sep 30, 2023 Jun 30, 2023 Mar 31, 2023 Dec 31, 2022 Sep 30, 2022 Jun 30, 2022 Mar 31, 2022 Dec 31, 2021 Sep 30, 2021 Jun 30, 2021 Mar 31, 2021 Dec 31, 2020 Sep 30, 2020 Jun 30, 2020 Mar 31, 2020
Current ratio 2.13 2.09 2.08 2.16 2.12 2.02 1.97 2.07 2.05 1.88 1.73 1.80 1.74 1.78 1.83 1.84 1.82 1.80 1.82 1.84
Quick ratio 1.02 0.94 1.00 1.05 1.04 0.94 0.94 0.91 0.86 0.74 0.02 0.04 0.78 0.04 0.04 0.05 0.82 0.78 0.87 0.85
Cash ratio 0.06 0.09 0.07 0.08 0.07 0.13 0.07 0.06 0.03 0.04 0.02 0.04 0.03 0.04 0.04 0.05 0.03 0.03 0.06 0.03

Fresh Del Monte Produce Inc's liquidity ratios have shown some fluctuations over the past few years.

The current ratio, which measures the company's ability to cover its short-term liabilities with its current assets, has generally been healthy, ranging between 1.73 and 2.16. The ratio peaked at 2.16 as of March 31, 2024, indicating that the company had $2.16 in current assets for every $1 in current liabilities, demonstrating a strong liquidity position.

On the other hand, the quick ratio, which provides a more stringent measure of liquidity by excluding inventory from current assets, fluctuated between 0.02 and 1.05. The ratio saw significant improvements towards the end of the period, reaching 1.02 as of December 31, 2024, suggesting that the company had a strong ability to meet its short-term obligations using its most liquid assets.

Lastly, the cash ratio, which represents the company's ability to cover its current liabilities with its cash and cash equivalents, ranged from 0.02 to 0.13. The ratio increased to 0.13 as of September 30, 2023, indicating an improvement in the company's cash position.

Overall, these liquidity ratios suggest that Fresh Del Monte Produce Inc has maintained a generally healthy liquidity position, with improvements in certain periods, which could indicate better short-term financial stability.

Additional liquidity measure

Dec 31, 2024 Sep 30, 2024 Jun 30, 2024 Mar 31, 2024 Dec 31, 2023 Sep 30, 2023 Jun 30, 2023 Mar 31, 2023 Dec 31, 2022 Sep 30, 2022 Jun 30, 2022 Mar 31, 2022 Dec 31, 2021 Sep 30, 2021 Jun 30, 2021 Mar 31, 2021 Dec 31, 2020 Sep 30, 2020 Jun 30, 2020 Mar 31, 2020
Cash conversion cycle days 75.78 95.08 92.31 97.87 73.89 92.75 96.10 100.19 72.00 91.55 50.47 56.45 64.20 49.96 46.37 48.23 57.41 81.69 82.51 88.42

The cash conversion cycle of Fresh Del Monte Produce Inc has shown fluctuating trends over the past few years. The company's cash conversion cycle, which represents the time it takes for a company to convert its investment in inventory into cash flows from sales, was 88.42 days as of March 31, 2020, indicating a relatively lengthy cycle.

Subsequently, the company managed to reduce its cash conversion cycle to 46.37 days by June 30, 2021, demonstrating efficiency in managing its working capital. However, the cycle increased to 100.19 days by March 31, 2023, reflecting a potential strain on the company's liquidity position.

Fresh Del Monte Produce Inc experienced a significant decrease in the cash conversion cycle to 75.78 days by December 31, 2024. This improvement may suggest more effective inventory management and quicker realization of cash from sales.

Overall, the company has witnessed fluctuations in its cash conversion cycle, indicating varying efficiencies in managing working capital and liquidity over the analyzed period. Monitoring this metric is crucial for assessing the company's operational effectiveness and financial health.