Darling Ingredients Inc (DAR)
Receivables turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 5,718,180 | 6,543,760 | 6,399,860 | 4,676,920 | 3,496,520 |
| Receivables | US$ in thousands | 18,897 | 8,391 | 695,156 | 470,167 | 409,270 |
| Receivables turnover | 302.60 | 779.85 | 9.21 | 9.95 | 8.54 |
December 31, 2024 calculation
Receivables turnover = Revenue ÷ Receivables
= $5,718,180K ÷ $18,897K
= 302.60
The receivables turnover ratio of Darling Ingredients Inc has shown some fluctuation over the years based on the provided data. In December 2020, the company had a receivables turnover of 8.54, which improved to 9.95 by December 2021. However, there was a slight decrease to 9.21 by December 2022. Notably, there was a significant surge in the ratio to 779.85 by December 2023, followed by a substantial drop to 302.60 by December 2024.
Such drastic fluctuations in the receivables turnover ratio can be indicative of irregularities or anomalies in the company's receivables management. A very high turnover ratio, as observed in December 2023, may signal aggressive credit collection practices or that the company's credit sales pace significantly outpaced its receivables. Conversely, a sharp decline, as seen in December 2024, may suggest potential issues with sales, collection efficiency, or possibly adjustments in the company's credit terms.
Further analysis into the reasons behind these significant variations in the receivables turnover ratio would be essential to assess the effectiveness of Darling Ingredients Inc's credit and collection policies and to determine the impact on the company's overall financial performance and liquidity.
Peer comparison
Dec 31, 2024