Fresh Del Monte Produce Inc (FDP)
Solvency ratios
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-capital ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-equity ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Financial leverage ratio | 1.68 | 1.82 | 1.89 | 1.89 | 1.95 |
Fresh Del Monte Produce Inc has consistently maintained a very low level of debt relative to its assets, capital, and equity over the past five years, as indicated by its debt-to-assets ratio, debt-to-capital ratio, and debt-to-equity ratio all being at 0.00 for each year. This suggests that the company operates with a conservative capital structure and relies more on equity financing rather than debt to fund its operations.
However, when looking at the financial leverage ratio, which indicates the extent to which the company is using debt to finance its operations, there has been a slight decline in recent years. The financial leverage ratio decreased from 1.95 in 2019 to 1.68 in 2023. While the financial leverage ratio is still relatively low, this trend indicates that the company has been reducing its reliance on debt to support its business activities.
Overall, Fresh Del Monte Produce Inc's solvency ratios reflect a strong financial position with minimal debt exposure, which may indicate lower financial risk and greater stability in the company's operations.
Coverage ratios
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Interest coverage | 1.28 | 5.86 | 5.04 | 3.53 | 4.46 |
Fresh Del Monte Produce Inc's interest coverage has shown fluctuations over the past five years. The interest coverage ratio measures the company's ability to cover its interest expenses with its operating income.
In 2023, the interest coverage ratio stands at 1.28, indicating that the company's operating income is just sufficient to cover its interest payments. This may raise concerns about the company's ability to meet its debt obligations comfortably.
Compared to the previous year, where the interest coverage ratio was 5.86, the significant drop suggests a decline in the company's ability to service its debt. However, it is worth noting that the ratio in 2022 was unusually high, which could have been influenced by specific factors during that year.
Looking at the trend over the past five years, the interest coverage ratio has generally been above 1, indicating that the company has been able to cover its interest expenses with its operating income. However, the fluctuation in the ratio signals some variability in the company's financial performance and its ability to manage its debt effectively.
Further analysis and monitoring of Fresh Del Monte Produce Inc's financial health and performance are recommended to assess the sustainability of its interest coverage ratio and its overall financial stability.