Darling Ingredients Inc (DAR)
Quick ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 126,502 | 127,016 | 68,906 | 81,617 | 72,935 |
| Short-term investments | US$ in thousands | — | — | — | 805 | — |
| Receivables | US$ in thousands | 8,391 | 695,156 | 470,167 | 409,270 | 409,655 |
| Total current liabilities | US$ in thousands | 998,137 | 1,068,440 | 752,684 | 675,305 | 688,339 |
| Quick ratio | 0.14 | 0.77 | 0.72 | 0.73 | 0.70 |
December 31, 2023 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($126,502K
+ $—K
+ $8,391K)
÷ $998,137K
= 0.14
The quick ratio of Darling Ingredients Inc has been fluctuating over the past five years, ranging from as low as 0.14 in 2023 to a high of 0.77 in 2022. This ratio indicates the company's ability to meet its short-term obligations with its most liquid assets. In 2023, the quick ratio of 0.14 suggests that the company may have difficulty in quickly covering its current liabilities using its current assets. This could be a concern for creditors and investors as it may indicate potential liquidity challenges. However, the improvement in the quick ratio in 2022 to 0.77 and its stability around 0.70-0.73 in the preceding years indicates a better ability to meet short-term obligations with its liquid assets. Investors and stakeholders should further investigate the reasons behind the significant decline in the quick ratio in 2023 to assess the firm's liquidity position accurately.
Peer comparison
Dec 31, 2023