Darling Ingredients Inc (DAR)
Return on total capital
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 468,217 | 504,606 | 622,868 | 831,050 | 949,726 | 1,040,124 | 1,130,086 | 1,052,014 | 1,029,068 | 990,880 | 928,212 | 917,858 | 884,470 | 747,796 | 669,588 | 507,618 | 430,936 | 649,859 | 582,263 | 550,099 |
| Long-term debt | US$ in thousands | 3,911,370 | 4,140,630 | — | — | 4,322,380 | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 4,377,810 | 4,551,410 | 4,460,950 | 4,593,130 | 4,605,430 | 4,380,710 | 4,368,230 | 4,032,530 | 3,809,020 | 3,580,110 | 3,493,470 | 3,425,280 | 3,280,960 | 3,205,520 | 3,118,580 | 2,966,600 | 2,891,910 | 2,773,920 | 2,633,360 | 2,543,560 |
| Return on total capital | 5.65% | 5.81% | 13.96% | 18.09% | 10.64% | 23.74% | 25.87% | 26.09% | 27.02% | 27.68% | 26.57% | 26.80% | 26.96% | 23.33% | 21.47% | 17.11% | 14.90% | 23.43% | 22.11% | 21.63% |
December 31, 2024 calculation
Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $468,217K ÷ ($3,911,370K + $4,377,810K)
= 5.65%
Darling Ingredients Inc has shown fluctuations in its return on total capital over the period from March 31, 2020, to December 31, 2024. The return on total capital started at 21.63% in March 2020, showing a positive trend and reaching a peak of 27.68% in September 2022. However, there was a decline in the return on total capital in the subsequent periods, with a significant drop to 10.64% by December 31, 2023, and a further decrease to 5.65% by the end of December 2024.
The return on total capital serves as a key indicator of the company's efficiency in generating profits from its total capital employed, including debt and equity. The fluctuations in this ratio suggest varying levels of profitability and capital efficiency throughout the period. Investors and financial analysts may consider these trends when evaluating Darling Ingredients Inc's financial performance and operational effectiveness.
Peer comparison
Dec 31, 2024