Fresh Del Monte Produce Inc (FDP)
Profitability ratios
Return on sales
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Gross profit margin | 8.12% | 7.66% | 7.14% | 5.97% | 6.83% |
| Operating profit margin | 1.35% | 3.52% | 2.61% | 1.82% | 2.54% |
| Pretax margin | 0.16% | 2.67% | 1.93% | 1.29% | 1.96% |
| Net profit margin | -0.26% | 2.22% | 1.88% | 1.17% | 1.48% |
Fresh Del Monte Produce Inc's profitability ratios have shown fluctuating trends over the past five years.
1. Gross profit margin: The company's gross profit margin has ranged from 5.97% to 8.12% during the period under review. Although there is slight volatility, there appears to be a general upward trend, indicating improvements in the company's ability to generate profits from its sales.
2. Operating profit margin: Fresh Del Monte's operating profit margin has varied between 1.35% and 3.52% over the five-year period. The substantial fluctuations suggest that the company's ability to control operating expenses and generate profits from its core business activities has been inconsistent.
3. Pretax margin: The pretax margin has ranged from 0.16% to 2.67% during the period, indicating varying levels of profitability before accounting for taxes. The low levels of pretax margin in some years suggest that the company may have faced challenges in generating profits after accounting for operating expenses but before tax obligations.
4. Net profit margin: The net profit margin has fluctuated between -0.26% and 2.22% over the five-year period. The negative net profit margin in 2023 indicates that the company incurred a loss during that year. Overall, the net profit margin performance suggests that Fresh Del Monte's ability to generate profits after all expenses and taxes has been inconsistent.
In conclusion, while Fresh Del Monte Produce Inc's gross profit margin has shown an increasing trend, the company's operating, pretax, and net profit margins have shown fluctuations and are not consistently strong. The company may benefit from efforts to improve cost management, operational efficiency, and revenue generation to enhance its overall profitability in the future.
Return on investment
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 1.84% | 4.52% | 3.27% | 2.34% | 3.41% |
| Return on assets (ROA) | -0.36% | 2.85% | 2.35% | 1.51% | 1.99% |
| Return on total capital | 1.62% | 7.51% | 5.68% | 4.38% | 6.59% |
| Return on equity (ROE) | -0.60% | 5.18% | 4.44% | 2.85% | 3.87% |
Fresh Del Monte Produce Inc's profitability ratios show fluctuations over the past five years.
1. Operating return on assets (Operating ROA) indicates the company's ability to generate profits from its assets before considering interest and taxes. The ratio has seen a downward trend from 4.52% in 2022 to 1.84% in 2023, signaling a decrease in operating efficiency.
2. Return on assets (ROA) measures the company's ability to generate profits from its total assets. The negative ROA in 2023 (-0.36%) indicates that the company incurred a net loss for the year. This could be a red flag for investors and creditors.
3. Return on total capital assesses the return generated by the company from both equity and debt investments. The ratio has fluctuated but generally shows a decreasing trend, from 7.51% in 2022 to 1.62% in 2023. This may indicate inefficiencies in capital utilization.
4. Return on equity (ROE) shows how well the company is utilizing shareholders' equity to generate profits. The negative ROE in 2023 (-0.60%) suggests that the company's net income is insufficient to cover shareholders' equity. This may raise concerns about the company's financial performance and profitability.
In conclusion, Fresh Del Monte Produce Inc's profitability has shown mixed results, with declining trends in some key ratios. It is essential for the company to address inefficiencies and improve profitability to ensure sustainable growth and shareholder value.