Darling Ingredients Inc (DAR)
Total asset 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 |
| Total assets | US$ in thousands | 10,070,500 | 11,061,100 | 9,202,370 | 6,133,730 | 5,613,330 |
| Total asset turnover | 0.57 | 0.59 | 0.70 | 0.76 | 0.62 |
December 31, 2024 calculation
Total asset turnover = Revenue ÷ Total assets
= $5,718,180K ÷ $10,070,500K
= 0.57
Darling Ingredients Inc's total asset turnover ratio has shown fluctuations over the past five years, ranging from 0.57 to 0.76. The ratio measures the efficiency of the company in generating sales revenue from its total assets.
In 2021, the total asset turnover ratio improved to 0.76, indicating that Darling Ingredients was able to generate $0.76 in sales revenue for every $1 of total assets. This increase suggests improved asset utilization or increased sales efficiency during that year.
However, this improvement was not sustained in the following years, as the ratio declined to 0.70 in 2022, 0.59 in 2023, and further to 0.57 in 2024. These decreasing values may indicate challenges in effectively utilizing the company's assets to generate sales revenue during those periods.
Overall, Darling Ingredients Inc's total asset turnover ratio reflects varying levels of efficiency in generating sales from its total asset base over the analyzed period. Further analysis of the underlying factors influencing this ratio's fluctuations would be necessary to provide a more detailed understanding of the company's operational performance and asset management strategies.
Peer comparison
Dec 31, 2024