Fresh Del Monte Produce Inc (FDP)
Financial leverage ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 3,184,100 | 3,458,900 | 3,398,100 | 3,263,300 | 3,349,900 |
| Total stockholders’ equity | US$ in thousands | 1,896,300 | 1,904,700 | 1,802,300 | 1,728,000 | 1,719,200 |
| Financial leverage ratio | 1.68 | 1.82 | 1.89 | 1.89 | 1.95 |
December 31, 2023 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $3,184,100K ÷ $1,896,300K
= 1.68
The financial leverage ratio of Fresh Del Monte Produce Inc has exhibited a declining trend over the past five years, decreasing from 1.95 in 2019 to 1.68 in 2023. This indicates that the company has been relying less on debt to finance its operations and assets relative to its equity. A lower financial leverage ratio suggests a lower level of financial risk and vulnerability to economic downturns, as the company is less dependent on borrowed funds. It also implies that the company has a stronger equity base to support its operations and potential growth opportunities. Overall, the decreasing trend in the financial leverage ratio of Fresh Del Monte Produce Inc reflects a more conservative financial structure and improved financial stability over the years.
Peer comparison
Dec 31, 2023