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Darling Ingredients Financial Strength

: 5 (As of Jun. 2022)
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Darling Ingredients has the Financial Strength Rank of 5.

GuruFocus Financial Strength Rank measures how strong a company's financial situation is. It is based on these factors:

1. The debt burden that the company has as measured by its Interest Coverage (current year). The higher, the better.
2. Debt to revenue ratio. The lower, the better.
3. Altman Z-Score.

Darling Ingredients's Interest Coverage for the quarter that ended in Jun. 2022 was 9.07. Darling Ingredients's debt to revenue ratio for the quarter that ended in Jun. 2022 was 0.47. As of today, Darling Ingredients's Altman Z-Score is 3.30.


Competitive Comparison

For the Packaged Foods subindustry, Darling Ingredients's Financial Strength, along with its competitors' market caps and Financial Strength data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.

   

Darling Ingredients Financial Strength Distribution

For the Consumer Packaged Goods industry and Consumer Defensive sector, Darling Ingredients's Financial Strength distribution charts can be found below:

* The bar in red indicates where Darling Ingredients's Financial Strength falls into.



Darling Ingredients Financial Strength Calculation

GuruFocus Financial Strength Rank measures how strong a company's financial situation is. It is based on these factors

A company ranks high with financial strength is likely to withstand any business slowdowns and recessions.

1. The debt burden that the company has as measured by its Interest Coverage (current year). The higher, the better.

Note: If both Interest Expense and Interest Income are empty, while Net Interest Income is negative, then use Net Interest Income as Interest Expense.

Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income (EBIT) by its Interest Expense:

Darling Ingredients's Interest Expense for the months ended in Jun. 2022 was $-24 Mil. Its Operating Income for the months ended in Jun. 2022 was $218 Mil. And its Long-Term Debt & Capital Lease Obligation for the quarter that ended in Jun. 2022 was $3,015 Mil.

Darling Ingredients's Interest Coverage for the quarter that ended in Jun. 2022 is

Interest Coverage=-1*Operating Income (Q: Jun. 2022 )/Interest Expense (Q: Jun. 2022 )
=-1*217.792/-24.008
=9.07

The higher the ratio, the stronger the company's financial strength is.

2. Debt to revenue ratio. The lower, the better.

Darling Ingredients's Debt to Revenue Ratio for the quarter that ended in Jun. 2022 is

Debt to Revenue Ratio=Total Debt (Q: Jun. 2022 ) / Revenue
=(Short-Term Debt & Capital Lease Obligation + Long-Term Debt & Capital Lease Obligation) / Revenue
=(78.193 + 3014.797) / 6600.752
=0.47

3. Altman Z-Score.

Z-Score model is an accurate forecaster of failure up to two years prior to distress. It can be considered the assessment of the distress of industrial corporations.

The zones of discrimination were as such:

When Z-Score is less than 1.81, it is in Distress Zones.
When Z-Score is greater than 2.99, it is in Safe Zones.
When Z-Score is between 1.81 and 2.99, it is in Grey Zones.

Darling Ingredients has a Z-score of 3.30, indicating it is in Safe Zones. This implies the Z-Score is strong.

Good Sign:

Altman Z-score of 3.3 is strong.

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.


Darling Ingredients  (NYSE:DAR) Financial Strength Explanation

The maximum rank is 10. Companies with rank 7 or higher will be unlikely to fall into distressed situations. Companies with rank of 3 or less are likely in financial distress.

Darling Ingredients has the Financial Strength Rank of 5.


Darling Ingredients Financial Strength Related Terms

Thank you for viewing the detailed overview of Darling Ingredients's Financial Strength provided by GuruFocus.com. Please click on the following links to see related term pages.


Darling Ingredients Business Description

Darling Ingredients logo
Traded in Other Exchanges
Address
5601 N MacArthur Boulevard, Irving, TX, USA, 75038
Darling Ingredients Inc develops and manufactures sustainable ingredients for customers in the pharmaceutical, food, pet food, fuel, and fertilizer industries. It collects and transforms all aspects of animal by-product streams into ingredients, including gelatin, fats, proteins, pet food ingredients, fertilizers, and other specialty products. Also, the company recovers and converts used cooking oil and bakery remnants into feed and fuel ingredients. Darling has three primary business segments: feed ingredients (the majority of revenue), food ingredients, and fuel ingredients. It provides grease trap services for food businesses and sells various equipment for collecting and delivering cooking oil. The company derives the majority of its revenue from customers in North America.
Executives
Clark Celeste A. director C/O ADVANCEPIERRE FOODS HOLDINGS, INC. 9987 CARVER ROAD BLUE ASH OH 45242
Dudley Sandra officer: EVP Renewables & US Spec. Ops. 5601 N. MACARTHUR BLVD IRVING TX 75038
Guimaraes Enderson director PEPSICO, INC. 700 ANDERSON HILL ROAD PURCHASE NY 10577
Long Jim officer: EVP Chief Admin. Officer 5601 N. MACARTHUR BLVD. IRVING TX 75038
Manzi Joseph officer: Chief Accounting Officer 5601 N. MACARTHUR BLVD. IRVING TX 75038
Albright Elizabeth director C/O THE CHEMOURS COMPANY 1007 MARKET STREET WILMINGTON DE 19898
Ringenberg Nicole M director 800 NORTH LINDBERGH BLVD. ST. LOUIS MO 63167
Snell Brenda officer: Chief Accounting Officer 251 O'CONNOR RIDGE BLVD., SUITE 300 IRVING TX 75038
Goodspeed Linda director C/O LENNOX INTERNATIONAL INC 2140 LAKE PARK BLVD RICHARDSON TX 75080-2254
Vervoort Jos officer: EVP - Rousselot 251 O'CONNOR RIDGE BLVD. SUITE 300 IRVING TX 75038
Adair Charles L director 251 O'CONNOR RIDGE BLVD. SUITE 300 IRVING TX 75038
Lynch Patrick C officer: EVP - Chief Admin Officer 2859 PACES FERRY RD STE 2000 ATLANTA GA 30339
Mize Gary W. director GEVO, INC., 345 INVERNESS DRIVE SOUTH BUILDING C, SUITE 310 ENGLEWOOD CO 80112
Pharr Cynthia director 7610 LAIRDS LANE DALLAS TX 75248
Elrod Rick A officer: EVP - Dar Pro USA 251 O'CONNER RIDGE BLVD., SUITE 300 IRVING TX 75038

Darling Ingredients Headlines

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