Fresh Del Monte Produce Inc (FDP)
Return on total capital
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 30,800 | 143,100 | 102,300 | 75,600 | 113,300 |
| Long-term debt | US$ in thousands | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 1,896,300 | 1,904,700 | 1,802,300 | 1,728,000 | 1,719,200 |
| Return on total capital | 1.62% | 7.51% | 5.68% | 4.38% | 6.59% |
December 31, 2023 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $30,800K ÷ ($—K + $1,896,300K)
= 1.62%
Fresh Del Monte Produce Inc's return on total capital has fluctuated over the past five years. In 2023, the return on total capital was 1.62%, a significant decrease from the previous year's 7.51%. This decline indicates lower efficiency in generating profits relative to the total capital employed in the business. However, the return remains positive, suggesting that the company is still able to generate some profit from its capital base.
Comparing 2023 to 2021 and 2020, the return on total capital has shown inconsistent performance, with variations in profitability levels. While the return on total capital was 5.68% in 2021 and 4.38% in 2020, it increased in 2022 to 7.51%. These fluctuations may indicate changes in the company's operational efficiency, capital structure, or overall financial performance.
In 2019, Fresh Del Monte Produce Inc achieved a return on total capital of 6.59%. This was higher than the most recent figure in 2023, suggesting that the company was more effective in utilizing its total capital to generate profits in the past.
Overall, the trend in Fresh Del Monte Produce Inc's return on total capital reflects variability in the company's ability to generate returns relative to its total capital base. Further analysis of the underlying factors influencing these changes is necessary to provide a more comprehensive understanding of the company's financial performance.
Peer comparison
Dec 31, 2023