Darling Ingredients Inc (DAR)
Inventory turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 6,220,070 | 5,896,350 | 4,209,050 | 3,455,270 | 3,273,180 |
| Inventory | US$ in thousands | 758,739 | 673,621 | 457,465 | 405,922 | 362,957 |
| Inventory turnover | 8.20 | 8.75 | 9.20 | 8.51 | 9.02 |
December 31, 2023 calculation
Inventory turnover = Cost of revenue ÷ Inventory
= $6,220,070K ÷ $758,739K
= 8.20
The inventory turnover ratio for Darling Ingredients Inc has been relatively stable over the past five years, ranging from 8.20 to 9.20. This indicates that the company is efficiently managing its inventory levels and converting them into sales. A higher inventory turnover ratio signifies that Darling Ingredients is selling its products more quickly, which can help prevent obsolescence and reduce storage costs. The slight fluctuations in the ratio over the years may reflect changes in demand, pricing, or inventory management policies within the company. Overall, the consistent and relatively high inventory turnover suggests effective inventory management practices at Darling Ingredients Inc.
Peer comparison
Dec 31, 2023