Market Cap : 12.14 B | Enterprise Value : 15.37 B | PE Ratio : 18.07 | PB Ratio : 3.50 |
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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.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.
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.
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.
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.
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.
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.
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