Darling Ingredients Inc (DAR)
Financial leverage ratio
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 10,070,500 | 10,572,700 | 10,620,600 | 10,942,800 | 11,061,100 | 10,810,300 | 10,973,200 | 10,861,100 | 9,202,370 | 8,808,750 | 8,026,690 | 6,615,620 | 6,133,730 | 5,925,720 | 5,833,320 | 5,591,450 | 5,613,330 | 5,380,990 | 5,327,150 | 5,377,780 |
| 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 |
| Financial leverage ratio | 2.30 | 2.32 | 2.38 | 2.38 | 2.40 | 2.47 | 2.51 | 2.69 | 2.42 | 2.46 | 2.30 | 1.93 | 1.87 | 1.85 | 1.87 | 1.88 | 1.94 | 1.94 | 2.02 | 2.11 |
December 31, 2024 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $10,070,500K ÷ $4,377,810K
= 2.30
Darling Ingredients Inc's financial leverage ratio has been fluctuating over the past few years, ranging from a low of 1.85 to a high of 2.69. Generally, a higher financial leverage ratio indicates that a company is using more debt to finance its operations and investments.
From March 2023 to March 2024, we see an upward trend in the financial leverage ratio, reaching its peak at 2.69 in March 2023 before declining slightly to 2.38 by June 2024. This suggests that the company may have increased its reliance on debt during this period.
It's important to note that a high financial leverage ratio can indicate higher financial risk for a company, as it means the company has a higher proportion of debt in its capital structure. Investors and creditors typically use this ratio to assess the company's solvency and financial health.
Overall, while fluctuations in financial leverage ratios are common for companies, it would be crucial for Darling Ingredients Inc to carefully manage its debt levels to ensure financial stability and sustainability in the long term.
Peer comparison
Dec 31, 2024