Darling Ingredients Inc (DAR)
Days of sales outstanding (DSO)
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Receivables turnover | 302.52 | 242.70 | 346.58 | 373.39 | 780.22 | 8.97 | 9.03 | — | 9.21 | — | — | — | 9.95 | — | — | — | — | — | — | — | |
| DSO | days | 1.21 | 1.50 | 1.05 | 0.98 | 0.47 | 40.71 | 40.42 | — | 39.63 | — | — | — | 36.67 | — | — | — | — | — | — | — |
December 31, 2024 calculation
DSO = 365 ÷ Receivables turnover
= 365 ÷ 302.52
= 1.21
Based on the provided data for Darling Ingredients Inc, the Days of Sales Outstanding (DSO) is a measure of how efficiently the company is managing its accounts receivables. A lower DSO indicates that the company is collecting its outstanding receivables more quickly, which is generally seen as positive for cash flow and working capital management.
Looking at the trend in DSO for Darling Ingredients Inc over the past few quarters, we see that the DSO was not available for some periods but started to be reported from the end of 2021. The DSO was 36.67 days at the end of December 31, 2021, and it increased slightly to 39.63 days by the end of December 31, 2022.
From the first half of 2023, there was a noticeable increase in DSO, reaching 40.71 days by the end of September 30, 2023. However, there was a significant improvement in collections efficiency by the end of 2023, with the DSO dropping to an extremely low 0.47 days by December 31, 2023. This continued to improve in the following quarters, with the DSO staying very low at 0.98 days by March 31, 2024, and further increasing slightly to 1.05 days by June 30, 2024, and 1.21 days by December 31, 2024.
Overall, the trend in the DSO for Darling Ingredients Inc indicates a recent enhancement in accounts receivable management efficiency, as the company seems to be collecting its receivables much more swiftly towards the end of the observed period.
Peer comparison
Dec 31, 2024