Darling Ingredients Inc (DAR)
Fixed asset turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 6,543,760 | 6,399,860 | 4,676,920 | 3,496,520 | 3,274,760 |
| Property, plant and equipment | US$ in thousands | 2,935,180 | 2,462,080 | 1,840,080 | 1,863,810 | 1,802,410 |
| Fixed asset turnover | 2.23 | 2.60 | 2.54 | 1.88 | 1.82 |
December 31, 2023 calculation
Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $6,543,760K ÷ $2,935,180K
= 2.23
Darling Ingredients Inc's fixed asset turnover has exhibited some fluctuations over the past five years, ranging from 1.82 to 2.60. The ratio indicates how efficiently the company is utilizing its fixed assets to generate sales. A higher fixed asset turnover ratio generally signifies better efficiency in generating sales from investments in property, plant, and equipment.
The declining trend from 2020 to 2021 followed by a slight increase in 2022 and a subsequent decrease in 2023 may suggest varying levels of operational efficiency in utilizing fixed assets to generate revenue. Overall, Darling Ingredients Inc seems to have improved its fixed asset turnover efficiency in recent years, with the metric being above 2 in the last three years, indicating that the company has been more effective in generating sales relative to its investments in fixed assets.
Peer comparison
Dec 31, 2023