Darling Ingredients Inc (DAR)
Payables turnover
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cost of revenue (ttm) | US$ in thousands | 5,450,700 | 5,587,570 | 5,745,610 | 5,981,960 | 6,220,030 | 6,410,150 | 6,490,100 | 6,307,660 | 5,887,880 | 5,398,330 | 4,847,230 | 4,465,860 | 4,209,054 | 4,047,534 | 3,826,925 | 3,576,345 | 3,455,263 | 3,283,719 | 3,286,507 | 3,285,876 |
| Payables | US$ in thousands | 348,705 | 331,695 | 349,522 | 343,388 | 425,588 | 394,748 | 427,066 | — | 472,491 | — | — | — | 307,118 | — | — | — | — | — | — | — |
| Payables turnover | 15.63 | 16.85 | 16.44 | 17.42 | 14.62 | 16.24 | 15.20 | — | 12.46 | — | — | — | 13.71 | — | — | — | — | — | — | — |
December 31, 2024 calculation
Payables turnover = Cost of revenue (ttm) ÷ Payables
= $5,450,700K ÷ $348,705K
= 15.63
Darling Ingredients Inc's payables turnover ratio has shown a fluctuating trend over the past few years. The ratio was not calculable for the periods up to March 31, 2021. From December 31, 2021, to March 31, 2024, the payables turnover ratio has been gradually increasing. This indicates that the company is managing its accounts payable more effectively, either by paying its suppliers more quickly or by negotiating better credit terms.
The peak in the payables turnover ratio was seen on March 31, 2024, at 17.42, suggesting that Darling Ingredients Inc is able to convert its accounts payable into cash more frequently within the year. This may indicate efficient working capital management and potentially strong supplier relationships.
The slight decrease in the payables turnover ratio from March 31, 2024, to December 31, 2024, to 15.63 could suggest a change in the company's payment practices or supplier terms during that period. Overall, a higher payables turnover ratio generally reflects better liquidity, cash flow management, and financial health.
Peer comparison
Dec 31, 2024