Darling Ingredients Inc (DAR)
Solvency ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt-to-assets ratio | 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 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-capital ratio | 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 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-equity ratio | 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 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| 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 |
Based on the provided solvency ratios for Darling Ingredients Inc, it is observed that the debt-to-assets ratio, debt-to-capital ratio, and debt-to-equity ratio have consistently remained at 0.00 over the past several quarters. This indicates that the company has not utilized debt financing to fund its operations and investments, and its assets are primarily funded by equity.
On the other hand, the financial leverage ratio has fluctuated over the quarters, ranging from 1.87 to 2.69. A higher financial leverage ratio indicates a higher level of financial risk as the company is using more debt to finance its operations. Darling Ingredients Inc's financial leverage ratio has shown some variability, suggesting fluctuations in the proportion of debt in its capital structure over time.
Overall, the stable and low debt ratios suggest that Darling Ingredients Inc has a conservative approach to leverage and is relying more on equity financing. The fluctuations in the financial leverage ratio should be further investigated to understand the potential impact on the company's financial risk and stability.
Coverage ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Interest coverage | 2.52 | 4.26 | 4.63 | 6.02 | 8.20 | 15.83 | 14.91 | 14.76 | 14.25 | 10.46 | 9.31 | 7.02 | 5.93 | 8.28 | 7.42 | 7.01 | 6.05 | 3.03 | 2.50 | 2.69 |
The interest coverage ratio for Darling Ingredients Inc has shown fluctuating trends over the past several quarters. The ratio measures the company's ability to pay interest expenses on its outstanding debt with its operating income.
The interest coverage ratio has generally been healthy, as it has consistently been above 1, indicating that the company is generating enough operating income to cover its interest expenses.
The ratio has shown a decreasing trend in recent quarters, starting at a high of 15.83 in September 2022 and gradually declining to 2.52 in December 2023. This may suggest a potential strain on the company's ability to cover its interest payments with operating income, although the ratio still remains above 1 in all quarters.
Overall, while the decreasing trend raises some concerns, it is essential to monitor Darling Ingredients Inc's interest coverage ratio closely in the future to ensure the company's financial health and ability to meet its debt obligations.