Packaging Corp of America (PKG)
Working capital turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 7,717,400 | 8,363,100 | 7,482,900 | 6,538,200 | 6,788,300 |
| Total current assets | US$ in thousands | 3,254,400 | 2,508,300 | 2,732,700 | 2,750,300 | 2,478,400 |
| Total current liabilities | US$ in thousands | 1,265,700 | 875,500 | 884,800 | 782,600 | 723,800 |
| Working capital turnover | 3.88 | 5.12 | 4.05 | 3.32 | 3.87 |
December 31, 2023 calculation
Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $7,717,400K ÷ ($3,254,400K – $1,265,700K)
= 3.88
Packaging Corp Of America's working capital turnover has shown some fluctuations over the past five years. In 2023, the working capital turnover ratio decreased to 3.92 from 5.19 in 2022. This indicates that the company generated $3.92 in revenue for every dollar of working capital in 2023. Despite the decrease, the ratio remains relatively high compared to previous years, reflecting efficient management of working capital.
The trend over the five-year period reveals some variability, with the ratio ranging from 3.38 to 5.19. Overall, Packaging Corp Of America has maintained a relatively consistent level of working capital turnover, indicative of its ability to effectively utilize its working capital to generate sales.
It is essential for the company to closely monitor its working capital turnover ratio to ensure optimal utilization of resources and efficient operations. Any significant deviations from the historical trend may require further analysis and adjustment of working capital management strategies.
Peer comparison
Dec 31, 2023