Darling Ingredients Inc (DAR)
Working capital 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 |
| Total current assets | US$ in thousands | 1,855,670 | 1,638,100 | 1,089,010 | 986,994 | 917,288 |
| Total current liabilities | US$ in thousands | 998,137 | 1,068,440 | 752,684 | 675,305 | 688,339 |
| Working capital turnover | 7.63 | 11.23 | 13.91 | 11.22 | 14.30 |
December 31, 2023 calculation
Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $6,543,760K ÷ ($1,855,670K – $998,137K)
= 7.63
The working capital turnover for Darling Ingredients Inc has exhibited fluctuations over the past five years. In 2023, the working capital turnover decreased to 7.63 from the previous year's 11.23. This decline indicates that the company generated less revenue relative to its working capital investment in 2023. However, when compared to the data from 2021 and 2020, the working capital turnover has shown a declining trend since 2021, where it was at its peak at 13.91.
Overall, the working capital turnover ratio provides insights into how efficiently the company is utilizing its working capital to generate revenue. Despite the decrease in 2023, it is essential for Darling Ingredients Inc to monitor and manage its working capital effectively to ensure optimal operational efficiency and profitability.
Peer comparison
Dec 31, 2023