Darling Ingredients Inc (DAR)
Working capital 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 current assets | US$ in thousands | 1,439,440 | 1,855,670 | 1,638,100 | 1,089,010 | 986,994 |
| Total current liabilities | US$ in thousands | 1,043,500 | 998,137 | 1,068,440 | 752,684 | 675,305 |
| Working capital turnover | 14.44 | 7.63 | 11.23 | 13.91 | 11.22 |
December 31, 2024 calculation
Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $5,718,180K ÷ ($1,439,440K – $1,043,500K)
= 14.44
Based on the provided data, the working capital turnover for Darling Ingredients Inc has shown fluctuations over the past five years.
In December 31, 2020, the working capital turnover was 11.22, indicating that the company generated 11.22 times worth of revenue with its working capital during that period. Subsequently, there was a notable increase to 13.91 by December 31, 2021, which suggests more efficient utilization of working capital to generate revenue.
However, by December 31, 2022, the working capital turnover decreased to 11.23, indicating a slight decline in the efficiency of working capital utilization. This trend continued in December 31, 2023, where the working capital turnover significantly dropped to 7.63, signaling a potential issue with managing working capital efficiently during that period.
Nonetheless, Darling Ingredients Inc managed to improve its working capital turnover significantly by December 31, 2024, with a ratio of 14.44, demonstrating a substantial increase in the efficiency of utilizing working capital to generate revenue.
Overall, the company's working capital turnover has shown both positive and negative fluctuations over the years, indicating the importance of closely monitoring and managing working capital efficiently to support revenue generation.
Peer comparison
Dec 31, 2024