Darling Ingredients Inc (DAR)
Financial leverage ratio
| 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 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 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 | 5,345,260 | 4,944,900 | 5,036,600 | 4,995,050 |
| Total stockholders’ equity | US$ in thousands | 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 | 2,565,820 | 2,308,490 | 2,342,910 | 2,290,540 |
| Financial leverage ratio | 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 | 2.08 | 2.14 | 2.15 | 2.18 |
December 31, 2023 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $11,061,100K ÷ $4,605,430K
= 2.40
Based on the financial leverage ratio data provided for Darling Ingredients Inc, we observe fluctuations in the ratio over the past few quarters. The financial leverage ratio measures the extent to which a company utilizes debt to finance its operations and investments.
The ratio experienced an increasing trend from March 2021 to March 2023, indicating a rise in the company's reliance on debt financing during this period. This may suggest that Darling Ingredients Inc sought additional funding through borrowing to support its growth or operating needs.
From March 2023 to September 2023, there was a slight decline in the financial leverage ratio, followed by another increase in the subsequent quarter. The ratio peaked in June 2023 at 2.51, reflecting a relatively high level of leverage compared to the other periods analyzed.
It is crucial to consider the reason behind the changes in the financial leverage ratio. A rising ratio could imply higher financial risk due to increased debt obligations, while a declining ratio might suggest a shift towards a more conservative capital structure.
Overall, the fluctuating trend in Darling Ingredients Inc's financial leverage ratio highlights the importance of monitoring the company's debt levels and assessing the associated risks and benefits of its financing decisions.
Peer comparison
Dec 31, 2023