Darling Ingredients Inc (DAR)
Pretax margin
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Earnings before tax but after interest (EBT) | US$ in thousands | 240,543 | 707,294 | 884,316 | 815,020 | 350,108 |
| Revenue | US$ in thousands | 5,718,180 | 6,543,760 | 6,399,860 | 4,676,920 | 3,496,520 |
| Pretax margin | 4.21% | 10.81% | 13.82% | 17.43% | 10.01% |
December 31, 2024 calculation
Pretax margin = EBT ÷ Revenue
= $240,543K ÷ $5,718,180K
= 4.21%
Based on the provided data, Darling Ingredients Inc's pretax margin has shown fluctuations over the past five years. The pretax margin indicates the company's efficiency in managing its operating expenses relative to its revenue before taxes.
In December 2020, Darling Ingredients Inc had a pretax margin of 10.01%, which increased to 17.43% by December 2021. This significant improvement suggests that the company was able to control its operating expenses effectively or increase its revenue during this period.
However, in the following years, the pretax margin fluctuated. By December 2022, the pretax margin had decreased to 13.82%, indicating a potential increase in operating expenses or a slowdown in revenue growth. Subsequently, in December 2023, the pretax margin further declined to 10.81%, possibly due to operational challenges impacting profitability.
The most recent data point, December 2024, shows a notable decrease in pretax margin to 4.21%. Such a substantial decline may raise concerns about the company's ability to generate profits before accounting for taxes efficiently.
Overall, Darling Ingredients Inc's pretax margin has displayed variability in recent years, suggesting fluctuations in the company's operational efficiency and profitability. It would be essential for stakeholders to further investigate the factors contributing to these fluctuations to assess the company's financial performance effectively.
Peer comparison
Dec 31, 2024