Darling Ingredients Inc (DAR)
Cash ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 126,502 | 127,016 | 68,906 | 81,617 | 72,935 |
| Short-term investments | US$ in thousands | — | — | — | 805 | — |
| Total current liabilities | US$ in thousands | 998,137 | 1,068,440 | 752,684 | 675,305 | 688,339 |
| Cash ratio | 0.13 | 0.12 | 0.09 | 0.12 | 0.11 |
December 31, 2023 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($126,502K
+ $—K)
÷ $998,137K
= 0.13
The cash ratio measures a company's ability to cover its short-term liabilities with its available cash and cash equivalents. Darling Ingredients Inc's cash ratio has fluctuated over the past five years, ranging from 0.09 to 0.13.
In 2023, the cash ratio stands at 0.13, indicating that the company has $0.13 in cash and cash equivalents for every $1 of current liabilities. This suggests a slight improvement compared to the previous year's ratio of 0.12.
While the company's cash ratio has generally remained relatively stable around the 0.11 to 0.13 range over the past five years, it dipped to 0.09 in 2021 before recovering.
Overall, Darling Ingredients Inc's cash ratio indicates that the company has a moderate ability to meet its short-term obligations with its available cash reserves, although there may be room for further enhancements in cash management practices.
Peer comparison
Dec 31, 2023