Darling Ingredients Inc (DAR)
Working capital turnover
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (ttm) | US$ in thousands | 5,716,780 | 5,662,700 | 5,866,990 | 6,171,400 | 6,546,820 | 6,826,010 | 6,947,070 | 6,832,740 | 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 |
| Total current assets | US$ in thousands | 1,439,440 | 1,496,920 | 1,507,520 | 1,619,310 | 1,855,670 | 1,843,000 | 1,875,960 | 1,902,510 | 1,638,100 | 1,562,040 | 1,461,830 | 1,259,030 | 1,089,010 | 1,103,640 | 1,022,580 | 940,767 | 986,994 | 931,174 | 931,051 | 930,060 |
| Total current liabilities | US$ in thousands | 1,043,500 | 1,062,540 | 963,057 | 967,294 | 998,137 | 1,033,700 | 1,013,550 | 1,099,020 | 1,068,440 | 1,027,980 | 919,827 | 813,414 | 752,684 | 756,197 | 692,212 | 637,707 | 675,305 | 623,554 | 606,296 | 651,746 |
| Working capital turnover | 14.44 | 13.04 | 10.78 | 9.47 | 7.63 | 8.43 | 8.06 | 8.50 | 11.24 | 11.25 | 10.05 | 11.22 | 13.91 | 12.60 | 12.23 | 12.18 | 11.23 | 11.08 | 10.48 | 12.11 |
December 31, 2024 calculation
Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $5,716,780K ÷ ($1,439,440K – $1,043,500K)
= 14.44
The working capital turnover for Darling Ingredients Inc fluctuated over the period from March 31, 2020, to December 31, 2024. The ratio indicates how efficiently the company is using its working capital to generate sales revenue.
From March 31, 2020, to December 31, 2021, the working capital turnover generally increased, indicating an improvement in the efficiency of converting working capital into sales. The ratio peaked at 13.91 on December 31, 2021, suggesting that the company was effectively utilizing its working capital during that period.
However, starting from March 31, 2022, the working capital turnover began to decline, reaching 7.63 on December 31, 2023. This downward trend may indicate a decrease in the efficiency of working capital utilization or changes in the company's operating cycle.
The ratio saw a slight recovery in the last four quarters of the data, with values ranging between 9.47 and 14.44. It is essential for Darling Ingredients Inc to closely monitor its working capital turnover to ensure optimal management of working capital resources for generating sales efficiently.
Peer comparison
Dec 31, 2024