Fresh Del Monte Produce Inc (FDP)
Operating return on assets (Operating ROA)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Operating income | US$ in thousands | 58,500 | 156,300 | 111,000 | 76,500 | 114,100 |
| Total assets | US$ in thousands | 3,184,100 | 3,458,900 | 3,398,100 | 3,263,300 | 3,349,900 |
| Operating ROA | 1.84% | 4.52% | 3.27% | 2.34% | 3.41% |
December 31, 2023 calculation
Operating ROA = Operating income ÷ Total assets
= $58,500K ÷ $3,184,100K
= 1.84%
Fresh Del Monte Produce Inc's operating return on assets (operating ROA) has shown fluctuations over the past five years. In 2023, the operating ROA decreased to 1.84% from 4.52% in 2022, indicating a decline in the company's ability to generate operating income from its assets. This drop in operating ROA may suggest a decrease in operational efficiency and profitability.
Comparing the 2023 operating ROA to historical data, it is lower than the 5-year average operating ROA of 2.88%, indicating a potential underperformance relative to the company's past performance. The downward trend observed from 2022 to 2023 may raise concerns about the company's operational effectiveness in utilizing its assets to generate profits.
Further analysis and investigation into the factors contributing to the decline in operating ROA in 2023 would be essential for stakeholders to understand the challenges faced by Fresh Del Monte Produce Inc in managing its assets effectively and improving its operational performance.
Peer comparison
Dec 31, 2023