Darling Ingredients Inc (DAR)
Profitability ratios
Return on sales
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Gross profit margin | 4.95% | 7.87% | 10.00% | 1.18% | 0.05% |
| Operating profit margin | 14.51% | 16.08% | 18.91% | 12.32% | 14.53% |
| Pretax margin | 10.81% | 13.82% | 17.43% | 10.01% | 11.36% |
| Net profit margin | 9.90% | 11.53% | 13.92% | 8.49% | 9.55% |
Darling Ingredients Inc's profitability ratios show a mixed performance over the past five years. The gross profit margin has seen fluctuating trends, decreasing from 10.00% in 2021 to 4.95% in 2023. This decline indicates a decrease in the efficiency of the company's core operations in generating profit after accounting for the cost of goods sold.
In terms of operating profit margin, the company experienced a gradual decrease from 18.91% in 2021 to 14.51% in 2023. While still maintaining a relatively strong level, this downward trend may suggest challenges in controlling operating expenses or generating sufficient revenue to cover these costs effectively.
The pretax margin also shows a declining trend, dropping from 17.43% in 2021 to 10.81% in 2023. This indicates that the company's profitability before taxes has been decreasing over the years, potentially influenced by changes in operating expenses, interest expenses, and other factors impacting income before tax.
On the other hand, the net profit margin has followed a similar trend to the pretax margin, declining from 13.92% in 2021 to 9.90% in 2023. This ratio reflects the company's overall profitability after accounting for all expenses, including taxes. The decreasing net profit margin suggests that the company may be facing challenges in managing costs effectively or experiencing fluctuations in revenue.
Overall, Darling Ingredients Inc's profitability ratios demonstrate a downward trend in recent years, indicating potential challenges in maintaining and improving profitability. Further analysis of the company's financial performance and strategies may be needed to identify underlying causes and potential areas for improvement.
Return on investment
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 8.59% | 11.18% | 14.42% | 7.68% | 8.90% |
| Return on assets (ROA) | 5.86% | 8.02% | 10.61% | 5.29% | 5.85% |
| Return on total capital | 20.99% | 26.51% | 26.73% | 14.62% | 17.57% |
| Return on equity (ROE) | 14.06% | 19.37% | 19.84% | 10.26% | 12.18% |
Darling Ingredients Inc's profitability ratios show fluctuating performance over the past five years. The operating return on assets (Operating ROA) has ranged from 7.68% to 14.42%, with a slight decline in recent years from 11.18% in 2022 to 8.59% in 2023. This metric indicates the company's ability to generate profits from its assets before interest and taxes.
The return on assets (ROA) has varied between 5.29% and 10.61% over the same period, reflecting the overall profitability of the company relative to its total assets. Darling Ingredients Inc experienced an increase in ROA from 5.86% in 2023 to 8.02% in 2022 before a slight decline to 5.86% in 2023.
The return on total capital shows a significant increase from 14.62% in 2020 to 26.73% in 2021, indicating the company's ability to generate returns for both equity and debt holders. In 2023, the return on total capital stood at 20.99%.
Similarly, the return on equity (ROE) has ranged from 10.26% to 19.84% over the five-year period. The company's ROE increased from 12.18% in 2019 to 19.37% in 2022 before decreasing to 14.06% in 2023. This metric reflects the profitability of the company from the perspective of its shareholders.
Overall, Darling Ingredients Inc's profitability ratios demonstrate fluctuating but generally positive performance, with some declines in recent years. It is important for investors and stakeholders to monitor these ratios to assess the company's financial health and sustainability in the long term.