Darling Ingredients Inc (DAR)
Solvency ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.39 | 0.39 | 0.00 | 0.00 | 0.39 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-capital ratio | 0.47 | 0.48 | 0.00 | 0.00 | 0.48 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-equity ratio | 0.89 | 0.91 | 0.00 | 0.00 | 0.94 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| 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 |
Darling Ingredients Inc's solvency ratios have remained stable with its Debt-to-Assets ratio consistently at around 0.00 from March 2020 to September 2024. However, there is a slight increase to 0.39 by December 2023 and 0.39 by December 2024, indicating a small proportion of the assets being financed by debt.
The Debt-to-Capital ratio also remained low and stable at 0.00 from March 2020 to September 2024 but increased to 0.48 by December 2023 and 0.47 by December 2024, suggesting a higher reliance on debt to finance the company's operations.
The Debt-to-Equity ratio was consistently low at 0.00 until a slight increase to 0.94 by December 2023, declining to 0.89 by December 2024, indicating the proportion of debt and equity used to finance the company's assets.
The Financial Leverage ratio shows an increasing trend from 2.11 in March 2020 to 2.30 in June 2022, peaking at 2.69 in March 2023, indicating a higher reliance on debt financing relative to equity. The ratio gradually decreased to 2.30 by December 2024, suggesting a shift towards a more balanced capital structure over the period analyzed.
Coverage ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Interest coverage | 83.31 | 1.95 | 2.41 | 3.21 | 3.66 | 8.21 | 8.93 | 8.35 | 8.20 | 15.83 | 14.91 | 14.76 | 14.25 | 10.46 | 9.31 | 7.02 | 5.93 | 8.28 | 7.42 | 7.01 |
Darling Ingredients Inc's interest coverage ratio has shown fluctuations over the period from March 31, 2020, to December 31, 2024. The interest coverage ratio represents the company's ability to meet its interest obligations based on its earnings before interest and taxes (EBIT). A higher interest coverage ratio indicates a better ability to cover interest payments.
During the period under review, Darling Ingredients Inc's interest coverage ratio progressively improved from 7.01 as of March 31, 2020, reaching a peak of 83.31 by December 31, 2024. This significant increase in the interest coverage ratio could signify an enhancement in the company's profitability and operational efficiency.
However, it is essential to note that there were fluctuations in the interest coverage ratio during the period, with some quarters showing lower ratios than others. For example, there was a notable drop in the interest coverage ratio from 14.91 as of June 30, 2022, to 8.20 by December 31, 2022. This could indicate a potential strain on the company's ability to cover interest payments in that quarter.
Overall, the upward trend in the interest coverage ratio over the period implies an improvement in Darling Ingredients Inc's ability to meet its interest obligations using its operating income. However, the fluctuations in the ratio highlight the importance of continuous monitoring of the company's financial performance and management of its debt levels.