Packaging Corp of America (PKG)

Activity ratios

Short-term

Turnover ratios

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 Dec 31, 2019 Sep 30, 2019 Jun 30, 2019 Mar 31, 2019
Inventory turnover 6.61 6.79 6.83 6.89 7.15 7.02 7.19 7.05 7.11 7.05 7.32 7.37 7.41 7.55 7.04 7.35 7.45 7.29 7.23 7.10
Receivables turnover 7.44 7.42 7.75 7.96 7.83 7.42 6.74 6.85 6.94 6.77 7.13 7.33 7.85 7.61 8.06 7.79 7.89 7.33 7.29 9.44
Payables turnover 16.64 16.49 18.51 16.85 17.02 14.39 13.00 12.14 14.19 12.43 14.95 14.64 15.09 16.68 18.65 15.29 16.81 15.24 15.41 14.58
Working capital turnover 3.88 5.19 4.24 4.68 5.12 4.27 4.05 4.11 4.05 3.38 3.26 3.25 3.34 3.34 3.36 3.67 3.92 3.92 4.18 5.77

Packaging Corp Of America's activity ratios provide insight into the efficiency and effectiveness of the company's operations.

- Inventory Turnover: The company's inventory turnover has been relatively stable over the quarters, ranging from 6.02 to 6.58 times. This indicates that the company is efficiently managing its inventory levels and turning over its inventory multiple times throughout the year.

- Receivables Turnover: The receivables turnover ratio shows how quickly the company is collecting payments from its customers. The ratio has shown variability, with a high of 8.06 in Q1 2023 and a low of 6.94 in Q2 2022. A generally higher turnover ratio suggests that the company is effective in collecting payments from its customers.

- Payables Turnover: The payables turnover ratio reflects how quickly the company pays its suppliers. Packaging Corp Of America's payables turnover has been relatively stable, with a range from 11.08 to 16.92. A higher turnover ratio indicates that the company is efficiently managing its payables and possibly taking advantage of favorable credit terms.

- Working Capital Turnover: This ratio measures how effectively the company is utilizing its working capital to generate sales. Packaging Corp Of America's working capital turnover has shown fluctuations, with a high of 5.25 in Q3 2023 and a low of 4.17 in Q2 2022. A higher turnover ratio implies that the company is efficiently using its working capital to support its operations and generate revenue.

Overall, the activity ratios suggest that Packaging Corp Of America is effectively managing its inventory, receivables, payables, and working capital to support its operational activities.

Average number of days

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 Dec 31, 2019 Sep 30, 2019 Jun 30, 2019 Mar 31, 2019
Days of inventory on hand (DOH) days 55.22 53.78 53.48 52.94 51.08 51.99 50.74 51.77 51.32 51.79 49.84 49.53 49.26 48.31 51.81 49.69 48.99 50.08 50.46 51.39
Days of sales outstanding (DSO) days 49.07 49.21 47.07 45.83 46.59 49.17 54.12 53.28 52.62 53.91 51.22 49.81 46.51 47.97 45.30 46.82 46.28 49.79 50.05 38.65
Number of days of payables days 21.93 22.14 19.72 21.66 21.45 25.36 28.08 30.07 25.73 29.37 24.42 24.93 24.20 21.88 19.57 23.87 21.71 23.94 23.68 25.03

Packaging Corp Of America's activity ratios provide insight into the management of its inventory, accounts receivable, and accounts payable.

The Days of Inventory on Hand (DOH) measure indicates that the company holds between 55.51 to 60.59 days' worth of inventory on average. This suggests that Packaging Corp may have a moderate level of inventory relative to its sales volume, with a slight increase in recent quarters.

The Days of Sales Outstanding (DSO) ratio shows that customers take between 45.26 to 52.56 days, on average, to pay their invoices. A decreasing trend in DSO suggests improved efficiency in collecting receivables, although there was a slight uptick in Q3 and Q4 2023.

The Number of Days of Payables ratio indicates that Packaging Corp takes between 21.58 to 32.94 days, on average, to pay its suppliers. This suggests that the company has been consistently managing its payables efficiently, with a slight decrease in payment time in recent quarters.

Overall, the company's activity ratios reflect a relatively stable management of inventory, accounts receivable, and accounts payable, with some fluctuations in recent quarters. Packaging Corp Of America may benefit from continued monitoring and potential adjustments to optimize working capital management.

Long-term

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 Dec 31, 2019 Sep 30, 2019 Jun 30, 2019 Mar 31, 2019
Fixed asset turnover 2.00 2.01 2.04 2.11 2.14 2.18 2.17 2.13 2.12 2.17 2.16 2.07 2.06 2.10 2.13 2.18 2.18 2.22 2.25 2.83
Total asset turnover 0.89 0.95 0.98 1.02 1.04 1.00 0.98 0.96 0.95 0.85 0.91 0.88 0.88 0.89 0.91 0.93 0.95 0.96 0.99 1.27

Packaging Corp Of America's long-term activity ratios show how effectively the company is utilizing its assets to generate sales revenue.

The fixed asset turnover ratio has shown a decreasing trend over the quarters, from 2.17 in Q4 2022 to 2.02 in Q4 2023. This suggests that the company is generating slightly less revenue from its fixed assets over time. However, the ratio remains relatively stable around the 2.00 mark, indicating that Packaging Corp Of America is efficiently utilizing its fixed assets to generate sales.

On the other hand, the total asset turnover ratio has also decreased from 1.06 in Q4 2022 to 0.90 in Q4 2023. This suggests that the company is generating less revenue relative to its total assets. A decreasing total asset turnover ratio could indicate declining efficiency in utilizing all assets, including both fixed and current.

Overall, while there seems to be a slight decline in both fixed asset turnover and total asset turnover ratios, Packaging Corp Of America still demonstrates relatively efficient asset utilization to generate sales revenue. An in-depth analysis of the underlying reasons for the decrease in these ratios can provide further insights into the company's operational performance.