Darling Ingredients Inc (DAR)

Activity ratios

Short-term

Turnover ratios

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
Inventory turnover 9.45 9.04 9.15 8.70 8.20 7.79 7.87 7.61 8.74 8.41 8.38 9.08 9.20 8.50 8.94 8.50 8.51 8.07 8.33 8.61
Receivables turnover 302.52 242.70 346.58 373.39 780.22 8.97 9.03 — 9.21 — — — 9.95 — — — — — — —
Payables turnover 15.63 16.85 16.44 17.42 14.62 16.24 15.20 — 12.46 — — — 13.71 — — — — — — —
Working capital turnover 14.44 13.04 10.78 9.47 7.63 8.43 8.06 8.50 11.24 11.25 10.05 11.22 13.91 12.60 12.23 12.18 11.23 11.08 10.48 12.11

Darling Ingredients Inc's inventory turnover ratio has shown fluctuations over time, ranging from 7.61 to 9.45, with an average of approximately 8.59. This indicates that the company efficiently manages its inventory levels to generate sales.

In terms of receivables turnover, the data is missing for several periods, but there is a noticeable improvement in the ratio from 2023 to 2024, reaching from 373.39 to 302.52, reflecting a faster collection of outstanding receivables.

The payables turnover ratio also displays variability, with values ranging from 14.62 to 17.42. This suggests that Darling Ingredients manages its accounts payable effectively, possibly negotiating favorable payment terms with suppliers.

The working capital turnover ratio fluctuates from 7.63 to 14.44, indicating the effectiveness of the company in utilizing its working capital to generate revenue. The higher ratios in recent periods suggest improved efficiency in utilizing working capital.

Overall, Darling Ingredients Inc demonstrates efficiency in managing its inventory and working capital, as well as improving trends in receivables turnover. The company's ability to efficiently turn over these assets bodes well for its operational performance and financial health.

Average number of days

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
Days of inventory on hand (DOH) days 38.63 40.36 39.88 41.95 44.52 46.85 46.40 47.96 41.76 43.41 43.55 40.19 39.67 42.95 40.84 42.93 42.88 45.22 43.84 42.37
Days of sales outstanding (DSO) days 1.21 1.50 1.05 0.98 0.47 40.71 40.42 — 39.63 — — — 36.67 — — — — — — —
Number of days of payables days 23.35 21.67 22.20 20.95 24.97 22.48 24.02 — 29.29 — — — 26.63 — — — — — — —

Darling Ingredients Inc's Days of Inventory on Hand (DOH) has shown some variability over the periods covered. The company's DOH ranged from a low of 38.63 days to a high of 47.96 days. In general, the trend appears to be relatively stable, with some fluctuations seen across the different quarters.

On the other hand, the Days of Sales Outstanding (DSO) and the Number of Days of Payables data is not available for several of the periods. However, the available data shows that DSO decreased from 36.67 days to 1.21 days, indicating an improvement in the collection of accounts receivable. Additionally, the Number of Days of Payables decreased from 26.63 days to 23.35 days, suggesting the company is taking longer to pay its suppliers.

Overall, these activity ratios provide insights into how efficiently Darling Ingredients manages its inventory, collects payments from customers, and pays its suppliers. Further analysis and comparison with industry benchmarks would be needed to fully assess the company's performance in managing these components of working capital.

Long-term

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
Fixed asset turnover 2.11 1.98 2.07 2.12 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
Total asset turnover 0.57 0.54 0.55 0.56 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

Darling Ingredients Inc's Fixed Asset Turnover ratio has shown an increasing trend over the past few years, indicating that the company is generating more revenue relative to its investment in fixed assets. The ratio increased steadily from 1.91 in March 2020 to 2.60 in December 2022 but experienced some fluctuations thereafter, ending at 2.11 in December 2024.

In contrast, the Total Asset Turnover ratio has been more volatile, with fluctuations throughout the period. The ratio ranged from 0.54 in September 2024 to 0.76 in December 2021. Overall, there was a general upward trend from 0.63 in March 2020 to 0.57 in December 2024, indicating that the company's ability to generate revenue from its total assets improved over the years.

The Fixed Asset Turnover ratio suggests that Darling Ingredients Inc has been efficient in utilizing its fixed assets to generate sales, while the Total Asset Turnover ratio reflects the company's overall efficiency in generating revenue from all its assets. Further analysis of the company's operations and investments would be necessary to fully understand the drivers behind these ratios and their implications for the company's long-term performance.