Fresh Del Monte Produce Inc (FDP)
Solvency ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| 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 | 1.56 | 1.68 | 1.82 | 1.89 | 1.89 |
Fresh Del Monte Produce Inc has consistently maintained a strong solvency position based on its solvency ratios. The debt-to-assets ratio, debt-to-capital ratio, and debt-to-equity ratio have all remained at 0.00 over the five-year period from 2020 to 2024, indicating that the company has no significant debt relative to its total assets, capital, or equity. This suggests that Fresh Del Monte Produce Inc relies more on equity financing rather than debt to fund its operations and investments.
Furthermore, the financial leverage ratio has exhibited a downward trend from 1.89 in 2020 to 1.56 in 2024. A decreasing trend in the financial leverage ratio signifies a reduction in the company's reliance on debt to finance its operations and indicates an improvement in financial stability and lower financial risk. Overall, these solvency ratios reflect Fresh Del Monte Produce Inc's solid financial health and ability to meet its long-term financial obligations without excessive leverage.
Coverage ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Interest coverage | 10.31 | 1.28 | 5.86 | 5.04 | 3.53 |
Fresh Del Monte Produce Inc's interest coverage ratio has shown fluctuations over the past five years. The ratio was at 3.53 in December 31, 2020, indicating the company's ability to cover its interest expenses 3.53 times over. This suggests a moderate ability to meet its interest obligations.
In December 31, 2021, the interest coverage ratio improved significantly to 5.04, reflecting a stronger ability to cover interest costs compared to the previous year.
By December 31, 2022, the interest coverage ratio further increased to 5.86, indicating a continued improvement in the company's ability to handle its interest payments effectively.
However, there was a notable decrease in the interest coverage ratio to 1.28 by December 31, 2023, signaling a potential concern as the company may have faced challenges in meeting its interest obligations during that period.
In a positive turn, Fresh Del Monte Produce Inc's interest coverage ratio significantly improved to 10.31 by December 31, 2024, indicating a robust ability to cover interest expenses more than ten times over. This substantial increase shows a marked improvement in the company's financial health and its ability to service its debt obligations comfortably.
Overall, the trend in Fresh Del Monte Produce Inc's interest coverage ratio demonstrates fluctuations but indicates a generally improving ability to manage and cover its interest expenses, with particularly positive performance noted in the most recent period.