Darling Ingredients Inc (DAR)
Days of sales outstanding (DSO)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Receivables turnover | 779.85 | 9.21 | 9.95 | 8.54 | 7.99 | |
| DSO | days | 0.47 | 39.65 | 36.69 | 42.72 | 45.66 |
December 31, 2023 calculation
DSO = 365 ÷ Receivables turnover
= 365 ÷ 779.85
= 0.47
To analyze Darling Ingredients Inc's Days of Sales Outstanding (DSO) over the past five years, we observe a significant improvement in collection efficiency as reflected in the decreasing trend in DSO.
- As of December 31, 2023, the DSO stands at a remarkably low level of 0.47 days, indicating that the company takes less than a day to collect its accounts receivable, which is indicative of efficient credit management and agile cash collection processes.
- Comparing this to the prior year, the DSO was 39.65 days as of December 31, 2022, showcasing a substantial reduction in the time taken to collect receivables, signifying enhanced liquidity management and stronger debtor control.
- Furthermore, the trend continues over the preceding years, with DSO decreasing from 36.69 days in 2021 to 42.72 days in 2020 and 45.66 days in 2019. This pattern underscores the company's consistent efforts to streamline its credit policies and improve collections efficiency.
In conclusion, Darling Ingredients Inc has demonstrated commendable progress in managing its accounts receivable effectively, as evidenced by the declining trend in DSO over the past five years. This improvement reflects positively on the company's financial health and operational efficiency.
Peer comparison
Dec 31, 2023