Darling Ingredients Inc (DAR)
Receivables turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 6,543,760 | 6,399,860 | 4,676,920 | 3,496,520 | 3,274,760 |
| Receivables | US$ in thousands | 8,391 | 695,156 | 470,167 | 409,270 | 409,655 |
| Receivables turnover | 779.85 | 9.21 | 9.95 | 8.54 | 7.99 |
December 31, 2023 calculation
Receivables turnover = Revenue ÷ Receivables
= $6,543,760K ÷ $8,391K
= 779.85
The receivables turnover of Darling Ingredients Inc has exhibited significant volatility over the past five years. In 2023, the company's receivables turnover ratio surged to an exceptionally high level of 779.85, reflecting a substantial improvement compared to the preceding year. This suggests that Darling was able to collect its accounts receivable much more efficiently in 2023.
The sharp increase in the receivables turnover ratio from 2022 to 2023 indicates a potentially more streamlined credit and collection process, which may have positively impacted the company's cash flow and liquidity position. This improvement could be attributed to stricter credit policies, quicker collection efforts, or a higher proportion of cash sales.
However, it is important to exercise caution in interpreting such a drastic rise in the receivables turnover ratio, as extreme fluctuations could sometimes signal irregularities in the financial data or reporting. Further analysis and scrutiny of the underlying reasons behind this unusually high ratio would be warranted to ensure accuracy and proper assessment of Darling Ingredients Inc's financial performance and management of accounts receivable.
Peer comparison
Dec 31, 2023