Darling Ingredients Inc (DAR)
Financial leverage ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 10,070,500 | 11,061,100 | 9,202,370 | 6,133,730 | 5,613,330 |
| Total stockholders’ equity | US$ in thousands | 4,377,810 | 4,605,430 | 3,809,020 | 3,280,960 | 2,891,910 |
| Financial leverage ratio | 2.30 | 2.40 | 2.42 | 1.87 | 1.94 |
December 31, 2024 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $10,070,500K ÷ $4,377,810K
= 2.30
The financial leverage ratio of Darling Ingredients Inc has exhibited some fluctuations over the period from December 31, 2020, to December 31, 2024. The ratio decreased from 1.94 in 2020 to 1.87 in 2021, suggesting a potential improvement in the company's ability to meet its financial obligations with a lower level of debt. However, there was a notable increase in the ratio to 2.42 by the end of 2022, indicating higher reliance on debt in the company's capital structure.
Subsequently, the financial leverage ratio remained relatively stable at around 2.40 in 2023, before experiencing a slight decrease to 2.30 by the end of 2024. This indicates that Darling Ingredients Inc has maintained a considerable level of financial leverage, which can amplify returns to shareholders but also increase the risk associated with its financial position.
Overall, the trend in Darling Ingredients Inc's financial leverage ratio suggests fluctuations in the company's capital structure and debt levels over the period under consideration. It is essential for investors and stakeholders to closely monitor these changes to assess the company's risk profile and financial health accurately.
Peer comparison
Dec 31, 2024