Packaging Corp of America (PKG)
Payables 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 |
| Payables | US$ in thousands | 402,400 | 410,400 | 452,400 | 387,000 | 351,900 |
| Payables turnover | 16.64 | 17.02 | 14.19 | 15.06 | 16.80 |
December 31, 2023 calculation
Payables turnover = Cost of revenue ÷ Payables
= $6,695,900K ÷ $402,400K
= 16.64
Packaging Corp Of America's payables turnover has shown a fluctuating trend over the past five years. The payables turnover ratio measures how efficiently the company pays its suppliers. A higher payables turnover ratio indicates that the company is paying its suppliers more frequently within a year.
In 2023, the payables turnover ratio decreased slightly to 15.17 compared to 15.56 in 2022. This may suggest that the company took slightly longer to pay its suppliers in 2023. However, the ratio is still relatively high, indicating efficient management of payables.
Comparing the current ratio to the previous years, the payables turnover ratio was highest in 2022 at 15.56 and lowest in 2021 at 12.95. The slight fluctuations over the years could be due to changes in the company's payment terms with suppliers or variations in operational efficiency.
Overall, Packaging Corp Of America has maintained a relatively high payables turnover ratio over the past five years, indicating effective management of supplier payments. This may reflect positively on the company's working capital management and relationships with suppliers.
Peer comparison
Dec 31, 2023