Darling Ingredients Inc (DAR)
Fixed asset turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 5,718,180 | 6,543,760 | 6,399,860 | 4,676,920 | 3,496,520 |
| Property, plant and equipment | US$ in thousands | 2,713,670 | 2,935,180 | 2,462,080 | 1,840,080 | 1,863,810 |
| Fixed asset turnover | 2.11 | 2.23 | 2.60 | 2.54 | 1.88 |
December 31, 2024 calculation
Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $5,718,180K ÷ $2,713,670K
= 2.11
Darling Ingredients Inc's fixed asset turnover has shown an upward trend over the period from December 31, 2020, to December 31, 2024. The ratio increased steadily from 1.88 in 2020 to 2.54 in 2021, further improving to 2.60 in 2022. However, there was a slight decrease in 2023 to 2.23 and a further decline to 2.11 in 2024.
The fixed asset turnover ratio measures how efficiently the company is utilizing its fixed assets to generate sales. A higher ratio indicates that the company is generating more revenue per dollar of investment in fixed assets.
Overall, the company's fixed asset turnover ratio demonstrates that Darling Ingredients Inc has generally been utilizing its fixed assets effectively to generate sales during this period, with some fluctuations in the later years. Further analysis may be required to understand the reasons behind the slight decline in the ratio in 2023 and 2024.
Peer comparison
Dec 31, 2024