Packaging Corp of America (PKG)
Working capital turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 8,383,300 | 7,802,400 | 8,478,000 | 7,730,300 | 6,658,200 |
| Total current assets | US$ in thousands | 3,233,000 | 3,254,400 | 2,508,300 | 2,732,700 | 2,750,300 |
| Total current liabilities | US$ in thousands | 1,001,600 | 1,265,700 | 875,500 | 884,800 | 782,600 |
| Working capital turnover | 3.76 | 3.92 | 5.19 | 4.18 | 3.38 |
December 31, 2024 calculation
Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $8,383,300K ÷ ($3,233,000K – $1,001,600K)
= 3.76
Packaging Corp of America's working capital turnover has shown a positive trend over the years, increasing from 3.38 in 2020 to 3.76 in 2024. This indicates that the company has been able to efficiently utilize its working capital to generate revenue.
While there was a significant improvement in 2022 with a working capital turnover of 5.19, there was a slight decrease in 2023 to 3.92 before a marginal increase in 2024.
Overall, the company's ability to turn its working capital into sales has been relatively stable, showcasing a proficient management of its current assets and liabilities.
Peer comparison
Dec 31, 2024