Darling Ingredients Inc (DAR)
Total asset turnover
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (ttm) | US$ in thousands | 6,537,880 | 6,817,070 | 6,938,130 | 6,823,800 | 6,402,280 | 6,008,080 | 5,446,680 | 4,998,880 | 4,679,450 | 4,377,748 | 4,041,368 | 3,690,927 | 3,499,347 | 3,409,387 | 3,402,572 | 3,369,843 | 3,349,524 | 3,343,226 | 3,314,219 | 3,303,513 |
| Total assets | US$ in thousands | 11,061,100 | 10,810,300 | 10,973,200 | 10,861,100 | 9,202,370 | 8,808,750 | 8,026,690 | 6,615,620 | 6,133,730 | 5,925,720 | 5,833,320 | 5,591,450 | 5,613,330 | 5,380,990 | 5,327,150 | 5,377,780 | 5,345,260 | 4,944,900 | 5,036,600 | 4,995,050 |
| 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 |
December 31, 2023 calculation
Total asset turnover = Revenue (ttm) ÷ Total assets
= $6,537,880K ÷ $11,061,100K
= 0.59
Darling Ingredients Inc's total asset turnover ratio has exhibited consistency in the range of 0.59 to 0.76 over the past several quarters. The ratio indicates that the company generates approximately 59% to 76% of revenue for each dollar of assets it holds. Generally, higher total asset turnover ratios are desirable as they suggest that the company is utilizing its assets efficiently to generate revenue.
The downtrend seen in the ratio from 0.76 in March 2022 to 0.59 in December 2023 could imply that Darling Ingredients Inc may be experiencing challenges in efficiently utilizing its assets to generate revenue. Management should investigate the factors contributing to this decrease and explore strategies to improve asset turnover in order to enhance overall operational efficiency and profitability.
Peer comparison
Dec 31, 2023