Darling Ingredients Inc (DAR)
Quick ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 75,973 | 126,502 | 127,016 | 68,906 | 81,617 |
| Short-term investments | US$ in thousands | 277,473 | — | — | — | 805 |
| Receivables | US$ in thousands | 18,897 | 8,391 | 695,156 | 470,167 | 409,270 |
| Total current liabilities | US$ in thousands | 1,043,500 | 998,137 | 1,068,440 | 752,684 | 675,305 |
| Quick ratio | 0.36 | 0.14 | 0.77 | 0.72 | 0.73 |
December 31, 2024 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($75,973K
+ $277,473K
+ $18,897K)
÷ $1,043,500K
= 0.36
The quick ratio of Darling Ingredients Inc has shown fluctuations over the years. As of December 31, 2020, the quick ratio was 0.73, indicating that the company had $0.73 in liquid assets available to cover each $1 of current liabilities. By December 31, 2021, the quick ratio slightly decreased to 0.72. However, by December 31, 2022, the quick ratio improved to 0.77, reflecting a better ability to meet short-term obligations with quick assets.
A significant decline was observed by December 31, 2023, with the quick ratio plummeting to 0.14. This sharp decrease could signal potential liquidity challenges or issues in meeting immediate financial obligations. However, there was a partial recovery by December 31, 2024, with the quick ratio increasing to 0.36. Despite the improvement, the quick ratio still remains relatively low compared to previous years, indicating that the company may continue to face liquidity concerns.
Overall, the trend in Darling Ingredients Inc's quick ratio highlights the importance of closely monitoring liquidity management to ensure the company can efficiently meet its short-term financial commitments.
Peer comparison
Dec 31, 2024