Packaging Corp of America (PKG)
Activity ratios
Short-term
Turnover ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 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 |
| Receivables turnover | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Payables turnover | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Working capital turnover | 3.76 | 3.82 | 3.86 | 3.82 | 3.92 | 5.25 | 4.29 | 4.74 | 5.19 | 4.39 | 4.17 | 4.24 | 4.18 | 3.43 | 3.31 | 3.29 | 3.38 | 3.39 | 3.40 | 3.71 |
Packaging Corp of America's inventory turnover has been relatively stable over the years, ranging from 5.87 to 6.74 times per year. This indicates that the company efficiently manages its inventory by quickly selling and replenishing its stock.
The receivables turnover and payables turnover ratios are not available, possibly due to the nature of the company's business or industry practices. Without this information, it is challenging to assess how effectively the company collects its receivables or manages its payables.
In terms of working capital turnover, Packaging Corp of America showed fluctuations in the ratio over the years, ranging from 3.29 to 5.25. A higher working capital turnover ratio indicates that the company effectively utilizes its working capital to generate sales. The increasing trend in the ratio from 3.29 in March 31, 2021, to 5.19 in December 31, 2022, suggests improved efficiency in utilizing working capital to drive revenue growth. However, the ratio declined to 3.76 by December 31, 2024, indicating a slight decrease in efficiency in utilizing working capital for generating sales.
Average number of days
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 62.21 | 60.08 | 59.67 | 59.39 | 60.59 | 58.97 | 58.53 | 57.87 | 55.85 | 56.81 | 55.51 | 56.72 | 56.24 | 56.31 | 54.27 | 54.57 | 54.38 | 54.12 | 58.18 | 55.24 |
| Days of sales outstanding (DSO) | days | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Number of days of payables | days | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
Packaging Corp of America's Days of Inventory on Hand (DOH) has shown some fluctuations over the years, ranging from a low of 54.12 days on September 30, 2020, to a high of 62.21 days on December 31, 2024. The average DOH over the period is approximately 57 days, indicating that the company holds inventory for about two months before selling it.
However, there is no data provided for Days of Sales Outstanding (DSO) and Number of Days of Payables, which are important components of activity ratios. Without this information, it is difficult to thoroughly analyze Packaging Corp of America's efficiency in managing accounts receivable and accounts payable.
In conclusion, while the data on Days of Inventory on Hand provides some insights into the company's inventory management, a complete analysis of activity ratios is not possible without information on DSO and payables turnover. It is essential for a comprehensive evaluation of the company's operational efficiency.
Long-term
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Fixed asset turnover | — | — | — | — | — | 1.89 | 1.92 | 2.13 | 2.02 | 2.24 | 2.24 | 2.20 | 2.19 | 2.20 | 2.04 | 2.10 | 2.08 | 2.13 | 2.16 | 2.21 |
| Total asset turnover | 0.95 | 0.93 | 0.88 | 0.88 | 0.88 | 0.96 | 0.99 | 1.03 | 1.06 | 1.02 | 1.01 | 0.99 | 0.99 | 0.86 | 0.92 | 0.90 | 0.90 | 0.90 | 0.92 | 0.94 |
Packaging Corp of America's fixed asset turnover ratio has been relatively stable over the past few years, averaging around 2. As of December 31, 2024, the fixed asset turnover ratio was not available in the data provided. This ratio indicates that the company generates $2.20 in sales for every dollar invested in fixed assets, reflecting efficient utilization of fixed assets to generate revenue.
In terms of total asset turnover, the company's performance has shown some fluctuations, ranging from 0.86 to 1.06. This ratio measures the company's ability to generate sales from its total assets. An increasing trend in total asset turnover over the years, reaching its peak of 1.06 as of December 31, 2022, indicates that Packaging Corp of America has become more efficient in utilizing its total assets to generate revenue.
Overall, both the fixed asset turnover and total asset turnover ratios suggest that Packaging Corp of America is effectively managing its assets to generate sales, with a potential for further improvement in optimizing asset utilization in the future.