Darling Ingredients Inc (DAR)
Payables 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 |
| Payables | US$ in thousands | 425,588 | 472,491 | 307,118 | 255,340 | 239,252 |
| Payables turnover | 14.62 | 12.48 | 13.70 | 13.53 | 13.68 |
December 31, 2023 calculation
Payables turnover = Cost of revenue ÷ Payables
= $6,220,070K ÷ $425,588K
= 14.62
Darling Ingredients Inc's payables turnover has shown fluctuations over the past five years. The payables turnover ratio measures how efficiently a company is managing its payments to suppliers. The increasing trend from 2019 to 2020, with a slight dip in 2021, followed by increases in 2022 and 2023, indicates that the company is taking longer to pay its suppliers. A higher payables turnover ratio suggests that the company is paying its suppliers more quickly, which could be beneficial in managing cash flows and maintaining good relationships with vendors. However, it is important to assess the reasons behind the fluctuations in the payables turnover ratio to understand the overall impact on Darling Ingredients Inc's financial health and operational efficiency.
Peer comparison
Dec 31, 2023