Darling Ingredients Inc (DAR)
Debt-to-equity ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Long-term debt | US$ in thousands | 3,911,370 | 4,322,380 | — | — | — |
| Total stockholders’ equity | US$ in thousands | 4,377,810 | 4,605,430 | 3,809,020 | 3,280,960 | 2,891,910 |
| Debt-to-equity ratio | 0.89 | 0.94 | 0.00 | 0.00 | 0.00 |
December 31, 2024 calculation
Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $3,911,370K ÷ $4,377,810K
= 0.89
Darling Ingredients Inc's debt-to-equity ratio remained at a stable 0.00 from December 31, 2020, to December 31, 2021, indicating that the company had no debt during this period. However, there was a significant change in the ratio from December 31, 2022, to December 31, 2024, where the ratio increased to 0.94 and then decreased to 0.89, respectively.
This indicates that the company started financing its operations or growth through debt in 2023, as the debt-to-equity ratio jumped to 0.94. By the end of 2024, Darling's leverage slightly decreased to 0.89, suggesting a reduction in debt or an increase in equity compared to the previous year.
Overall, while the sudden increase in leverage in 2023 may reflect the company's strategic decision to utilize debt for expansion or other purposes, the subsequent decrease in 2024 demonstrates a strengthening of its equity position or a reduction in debt levels, which could potentially improve the company's financial stability and risk profile.
Peer comparison
Dec 31, 2024