Packaging Corp of America (PKG)
Working capital turnover
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (ttm) | US$ in thousands | 8,383,300 | 8,175,100 | 7,928,700 | 7,805,500 | 7,802,300 | 7,842,800 | 8,032,700 | 8,317,900 | 8,478,000 | 8,542,700 | 8,416,900 | 8,059,500 | 7,730,300 | 7,401,400 | 7,095,000 | 6,756,700 | 6,658,200 | 6,664,000 | 6,721,000 | 6,939,300 |
| Total current assets | US$ in thousands | 3,233,000 | 3,241,400 | 3,483,900 | 3,445,100 | 3,254,400 | 2,773,300 | 2,670,600 | 2,585,400 | 2,508,300 | 2,907,500 | 2,990,400 | 2,869,400 | 2,732,700 | 3,804,800 | 2,961,100 | 2,856,900 | 2,750,300 | 2,743,700 | 2,659,000 | 2,613,600 |
| Total current liabilities | US$ in thousands | 1,001,600 | 1,100,500 | 1,431,500 | 1,400,300 | 1,265,700 | 1,278,900 | 797,700 | 828,900 | 875,500 | 963,400 | 972,900 | 967,900 | 884,800 | 1,644,400 | 816,800 | 805,800 | 782,600 | 775,400 | 683,600 | 744,600 |
| 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 |
December 31, 2024 calculation
Working capital turnover = Revenue (ttm) ÷ (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 fluctuations over the analyzed period. The ratio ranged from a low of 3.29 in March 31, 2021, to a high of 5.19 in December 31, 2022. Generally, a higher working capital turnover indicates that the company is generating more revenue relative to its working capital.
The upward trend observed from December 31, 2021, to December 31, 2022, suggests an improvement in efficiency in utilizing its working capital to generate sales. However, there was a decrease in the ratio in the subsequent quarters. This could indicate either a decrease in sales relative to working capital or an increase in the level of working capital compared to sales.
Further analysis of the company's operational and financial activities would provide more insights into the factors driving these changes in the working capital turnover ratio.
Peer comparison
Dec 31, 2024