Darling Ingredients Inc (DAR)
Profitability ratios
Return on sales
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Gross profit margin | 22.35% | 25.14% | 7.87% | 10.00% | 1.18% |
| Operating profit margin | 8.19% | 14.51% | 16.08% | 18.91% | 12.32% |
| Pretax margin | 4.21% | 10.81% | 13.82% | 17.43% | 10.01% |
| Net profit margin | 4.88% | 9.90% | 11.53% | 13.92% | 8.49% |
Darling Ingredients Inc's profitability ratios have shown some fluctuations over the years. The gross profit margin increased significantly from 2020 to 2024, starting at 1.18% and reaching 22.35%. This improvement indicates that the company is effectively managing its production costs and generating higher profit from its core operations.
In terms of operating profit margin, there was a positive trend from 2020 to 2021, with a peak at 18.91%, before declining to 8.19% in 2024. This suggests that while Darling Ingredients Inc may have initially improved its operational efficiency, there was a subsequent decline in profitability at the operating level.
The pretax margin also exhibited a similar pattern, showing an increase from 2020 to 2021, but then decreasing to 4.21% by 2024. This indicates that the company's performance in generating profit before taxes has been mixed over the years.
The net profit margin followed a trend similar to the pretax margin, starting at 8.49% in 2020, peaking at 13.92% in 2021, and then dropping to 4.88% in 2024. This suggests that Darling Ingredients Inc's profitability after accounting for all expenses and taxes has shown variability, with a notable decline in 2024.
Overall, while the company has exhibited improvements in its gross profit margin, Darling Ingredients Inc may need to focus on enhancing its operational efficiency and controlling costs to sustain and improve its overall profitability in the future.
Return on investment
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 4.65% | 8.59% | 11.18% | 14.42% | 7.68% |
| Return on assets (ROA) | 2.77% | 5.86% | 8.02% | 10.61% | 5.29% |
| Return on total capital | 5.65% | 10.83% | 26.51% | 26.73% | 14.62% |
| Return on equity (ROE) | 6.37% | 14.06% | 19.37% | 19.84% | 10.26% |
The profitability ratios of Darling Ingredients Inc have shown variations over the years.
- Operating Return on Assets (Operating ROA) has fluctuated with a decrease from 2021 to 2024, indicating a decline in the company's ability to generate operating profit from its assets efficiently.
- Return on Assets (ROA) also demonstrates a downward trend from 2021 to 2024, reflecting a decrease in the company's overall profitability in relation to its total assets.
- Return on Total Capital peaked in 2021 at 26.73% but then dropped significantly by 2024 to only 5.65%, signifying a decline in the company's effectiveness in generating returns for both debt and equity capital providers over the period.
- Return on Equity (ROE) has followed a similar pattern, showing a decrease from 201 to 2024, implying less favorable returns for the company's shareholders over time.
In summary, Darling Ingredients Inc's profitability ratios indicate a general downward trend in the company's ability to generate profits from its assets and capital over the years, with 2024 showing the lowest profitability ratios among the years mentioned.