Packaging Corp of America (PKG)
Inventory turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 6,695,900 | 6,984,900 | 6,420,000 | 5,830,000 | 5,910,700 |
| Inventory | US$ in thousands | 1,013,100 | 977,300 | 902,500 | 787,900 | 794,100 |
| Inventory turnover | 6.61 | 7.15 | 7.11 | 7.40 | 7.44 |
December 31, 2023 calculation
Inventory turnover = Cost of revenue ÷ Inventory
= $6,695,900K ÷ $1,013,100K
= 6.61
Packaging Corp Of America's inventory turnover has shown a slight decrease over the past few years, with the ratio ranging from 6.02 to 6.71 in the last five years. This indicates that, on average, the company is able to sell and replace its inventory approximately 6 times a year. The decreasing trend in inventory turnover may suggest that the company is holding onto its inventory for a longer period compared to previous years, which could potentially result in higher carrying costs or obsolescence risks. Further analysis of the company's inventory management policies and operational efficiency would be beneficial to identify potential areas for improvement.
Peer comparison
Dec 31, 2023