Packaging Corp of America (PKG)
Inventory turnover
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cost of revenue (ttm) | US$ in thousands | 6,600,300 | 6,451,700 | 6,297,800 | 6,167,600 | 6,103,400 | 6,103,700 | 6,187,900 | 6,329,000 | 6,387,300 | 6,392,400 | 6,274,300 | 6,056,900 | 5,857,200 | 5,704,900 | 5,563,800 | 5,348,500 | 5,288,700 | 5,244,500 | 5,235,500 | 5,351,700 |
| Inventory | US$ in thousands | 1,124,900 | 1,061,900 | 1,029,500 | 1,003,600 | 1,013,100 | 986,100 | 992,200 | 1,003,400 | 977,300 | 994,900 | 954,200 | 941,200 | 902,500 | 880,100 | 827,200 | 799,600 | 787,900 | 777,600 | 834,500 | 809,900 |
| Inventory turnover | 5.87 | 6.08 | 6.12 | 6.15 | 6.02 | 6.19 | 6.24 | 6.31 | 6.54 | 6.43 | 6.58 | 6.44 | 6.49 | 6.48 | 6.73 | 6.69 | 6.71 | 6.74 | 6.27 | 6.61 |
December 31, 2024 calculation
Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $6,600,300K ÷ $1,124,900K
= 5.87
Packaging Corp of America's inventory turnover has remained relatively stable over the period from March 31, 2020, to December 31, 2024, ranging from a low of 5.87 to a high of 6.74. The inventory turnover ratio measures how many times a company's inventory is sold and replaced over a certain period, indicating how efficiently the company manages its inventory.
The average inventory turnover during this period is around 6.34, which suggests that Packaging Corp of America is able to turn over its inventory approximately 6.34 times a year on average. A higher inventory turnover ratio generally indicates effective inventory management and efficient sales practices.
The slight fluctuations in the inventory turnover ratio over the years could be influenced by various factors such as changes in demand for packaging products, seasonality in sales, inventory management strategies, or supply chain disruptions. Overall, the consistent levels of inventory turnover within the range of 5.87 to 6.74 indicate that Packaging Corp of America has been maintaining a healthy balance between inventory levels and sales volumes.
Peer comparison
Dec 31, 2024
Dec 31, 2024