Darling Ingredients Inc (DAR)
Payables turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 5,450,700 | 6,220,070 | 5,896,350 | 4,209,050 | 3,455,270 |
| Payables | US$ in thousands | 348,705 | 425,588 | 472,491 | 307,118 | 255,340 |
| Payables turnover | 15.63 | 14.62 | 12.48 | 13.70 | 13.53 |
December 31, 2024 calculation
Payables turnover = Cost of revenue ÷ Payables
= $5,450,700K ÷ $348,705K
= 15.63
Darling Ingredients Inc's payables turnover ratio indicates the company's efficiency in managing its accounts payable. The trend shows a consistent improvement over the years, with values of 13.53 in 2020, 13.70 in 2021, 12.48 in 2022, 14.62 in 2023, and 15.63 in 2024.
A higher payables turnover ratio suggests that the company is paying its suppliers more frequently within the year, which could reflect strong cash management and potentially good relationships with suppliers.
The increasing trend in payables turnover may indicate that Darling Ingredients Inc is managing its trade payables more effectively, possibly negotiating better payment terms or optimizing its working capital management. However, a very high ratio could also indicate a potential strain on relationships with suppliers if the company is paying too quickly.
Overall, the increasing trend in payables turnover for Darling Ingredients Inc shows a positive efficiency in managing its payables, which can contribute to a healthier financial position and operational performance.
Peer comparison
Dec 31, 2024