Darling Ingredients Inc (DAR)
Activity ratios
Short-term
Turnover ratios
| 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 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Inventory turnover | 8.01 | 7.62 | 7.69 | 7.44 | 8.74 | 8.41 | 8.38 | 9.08 | 9.20 | 8.50 | 8.94 | 8.50 | 8.51 | 8.07 | 8.33 | 8.61 | 9.01 | 9.24 | 9.30 | 9.56 |
| Receivables turnover | 779.15 | 8.95 | 9.02 | — | 9.21 | — | — | — | 9.95 | — | — | — | — | — | — | — | — | — | — | — |
| Payables turnover | 14.28 | 15.88 | 14.87 | — | 12.46 | — | — | — | 13.71 | — | — | — | — | — | — | — | — | — | — | — |
| Working capital turnover | 7.62 | 8.42 | 8.05 | 8.49 | 11.24 | 11.25 | 10.05 | 11.22 | 13.91 | 12.60 | 12.23 | 12.18 | 11.23 | 11.08 | 10.48 | 12.11 | 14.63 | 12.97 | 11.02 | 10.16 |
Darling Ingredients Inc's inventory turnover ratios have shown some fluctuations over the periods analyzed, ranging from 7.44 to 9.56. However, overall, the company has maintained a relatively stable average inventory turnover rate, indicating efficient management of inventory levels.
The receivables turnover ratio has been highly erratic, with significant variability from as low as 8.95 to as high as 779.15. This inconsistency may suggest difficulties in collecting receivables promptly or variations in sales terms with customers.
On the other hand, the payables turnover ratio has been more stable, with values ranging from 12.46 to 15.88. This implies that Darling Ingredients Inc has been able to effectively manage its accounts payable, possibly negotiating favorable payment terms with suppliers.
The working capital turnover ratios have demonstrated a decreasing trend over the periods, indicating a decline in the efficiency of generating revenue relative to working capital employed. This may raise concerns about the company's ability to utilize its working capital effectively to generate sales.
Overall, while Darling Ingredients Inc appears to efficiently manage its inventory and payables, there may be room for improvement in managing receivables and optimizing the utilization of working capital to enhance operational efficiency.
Average number of days
| 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 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 45.56 | 47.90 | 47.44 | 49.06 | 41.76 | 43.41 | 43.55 | 40.19 | 39.67 | 42.95 | 40.84 | 42.93 | 42.88 | 45.22 | 43.84 | 42.37 | 40.53 | 39.49 | 39.24 | 38.20 |
| Days of sales outstanding (DSO) | days | 0.47 | 40.76 | 40.47 | — | 39.63 | — | — | — | 36.67 | — | — | — | — | — | — | — | — | — | — | — |
| Number of days of payables | days | 25.55 | 22.98 | 24.55 | — | 29.29 | — | — | — | 26.63 | — | — | — | — | — | — | — | — | — | — | — |
Days of inventory on hand (DOH) measures how many days a company takes to sell its inventory. For Darling Ingredients Inc, the trend in DOH has been increasing slightly over the past year, indicating a longer time to sell inventory.
Days of sales outstanding (DSO) calculates the average number of days it takes for a company to collect payment after a sale. Darling Ingredients Inc experienced a significant decrease in DSO in December 2023, showing improved efficiency in collecting receivables compared to previous quarters where data was available.
Number of days of payables indicates the average number of days it takes for a company to pay its suppliers. Darling Ingredients Inc had a decline in the number of days of payables in December 2023, which suggests the company is paying its suppliers more quickly.
Overall, the changes in these activity ratios for Darling Ingredients Inc reflect variations in its inventory management, accounts receivable collection, and accounts payable processes, which can provide insights into the company's operational efficiency and liquidity management.
Long-term
| 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 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Fixed asset turnover | 2.23 | 2.44 | 2.50 | 2.52 | 2.60 | 2.56 | 2.43 | 2.68 | 2.54 | 2.39 | 2.19 | 2.03 | 1.88 | 1.91 | 1.92 | 1.91 | 1.86 | 1.95 | 1.92 | 1.95 |
| Total asset turnover | 0.59 | 0.63 | 0.63 | 0.63 | 0.70 | 0.68 | 0.68 | 0.76 | 0.76 | 0.74 | 0.69 | 0.66 | 0.62 | 0.63 | 0.64 | 0.63 | 0.63 | 0.68 | 0.66 | 0.66 |
Darling Ingredients Inc's fixed asset turnover ratio has shown variability over the past few years, ranging from a low of 1.88 in December 2020 to a high of 2.68 in March 2022. This ratio measures the efficiency of the company in generating sales revenue from its investment in fixed assets. A higher ratio signifies that the company is effectively utilizing its fixed assets to generate revenue.
On the other hand, the total asset turnover ratio has also fluctuated, with a low of 0.59 in December 2019 to a high of 0.76 in March 2022 and December 2021. This ratio indicates how efficiently the company is using its total assets to generate sales. A higher total asset turnover ratio reflects that the company is generating more revenue per unit of assets.
Overall, the trend in both fixed asset turnover and total asset turnover ratios shows some variability over the years, but the company seems to have improved its efficiency in utilizing both its fixed and total assets to generate sales revenue in recent periods. Further analysis and comparison with industry benchmarks could provide deeper insights into Darling Ingredients Inc's long-term activity performance.