Darling Ingredients Inc (DAR)
Return on total capital
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 966,517 | 1,009,880 | 877,097 | 422,794 | 450,741 |
| Long-term debt | US$ in thousands | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 4,605,430 | 3,809,020 | 3,280,960 | 2,891,910 | 2,565,820 |
| Return on total capital | 20.99% | 26.51% | 26.73% | 14.62% | 17.57% |
December 31, 2023 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $966,517K ÷ ($—K + $4,605,430K)
= 20.99%
Over the past five years, Darling Ingredients Inc has demonstrated varying levels of return on total capital, ranging from 14.62% in 2020 to 26.73% in 2021. The return on total capital decreased to 17.57% in 2019 before increasing again to 26.51% in 2022 and then slightly decreasing to 20.99% in 2023. This fluctuation indicates some level of inconsistency in the company's efficiency in generating returns from its total capital over the years. However, overall, Darling Ingredients Inc has shown a relatively strong performance in utilizing its total capital to generate returns, as indicated by the return percentages exceeding 15% in each year.
Peer comparison
Dec 31, 2023