Darling Ingredients Inc (DAR)
Days of sales outstanding (DSO)
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Receivables turnover | 302.60 | 779.85 | 9.21 | 9.95 | 8.54 | |
| DSO | days | 1.21 | 0.47 | 39.65 | 36.69 | 42.72 |
December 31, 2024 calculation
DSO = 365 ÷ Receivables turnover
= 365 ÷ 302.60
= 1.21
Darling Ingredients Inc's days of sales outstanding (DSO) has exhibited a decreasing trend over the past five years, starting at 42.72 days as of December 31, 2020, and falling to 1.21 days by December 31, 2024. This indicates that the company has been able to collect its accounts receivable more efficiently over the years.
The significant decrease in DSO from 2020 to 2024 suggests that Darling Ingredients Inc has been successful in managing its accounts receivable and improving its cash flow cycle. A lower DSO implies that the company is collecting payments from customers more quickly, which can enhance liquidity and working capital management.
It is worth noting that the extremely low DSO of 0.47 days as of December 31, 2023, and 1.21 days as of December 31, 2024, may be unusual and could potentially be influenced by specific circumstances or adjustments in accounting practices. Further analysis and inquiry into the reasons behind these exceptionally low values may be necessary to fully understand the performance metrics associated with accounts receivable management at Darling Ingredients Inc.
Peer comparison
Dec 31, 2024