Packaging Corp of America (PKG)
Working capital turnover
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (ttm) | US$ in thousands | 7,717,200 | 7,752,600 | 7,939,800 | 8,213,600 | 8,363,200 | 8,305,800 | 8,173,700 | 7,815,000 | 7,480,100 | 7,299,000 | 6,993,000 | 6,658,500 | 6,572,600 | 6,578,400 | 6,634,200 | 6,855,700 | 6,877,900 | 6,904,500 | 6,989,000 | 8,786,200 |
| Total current assets | US$ in thousands | 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 | 2,478,400 | 2,531,300 | 2,402,700 | 2,262,400 |
| Total current liabilities | US$ in thousands | 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 | 723,800 | 770,700 | 729,600 | 740,700 |
| 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 |
December 31, 2023 calculation
Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $7,717,200K ÷ ($3,254,400K – $1,265,700K)
= 3.88
The working capital turnover for Packaging Corp Of America has shown fluctuations over the past eight quarters, ranging from a low of 4.17 in Q2 2022 to a high of 5.25 in Q3 2023. The working capital turnover ratio indicates how efficiently the company is utilizing its working capital to generate revenue.
A working capital turnover ratio of over 1 indicates that the company is effectively using its working capital to generate sales. In this case, the company's working capital turnover has consistently been well above 1, indicating that Packaging Corp Of America is efficiently utilizing its working capital to support its operations and generate revenue.
The increase in the working capital turnover ratio from Q2 2022 to Q3 2023 suggests that the company has improved its efficiency in using its working capital to generate sales. This could be due to better inventory management, tighter control over receivables and payables, or more effective cash management practices.
Overall, the trend in Packaging Corp Of America's working capital turnover ratios indicates that the company is effectively managing its working capital to support its operations and drive revenue growth.
Peer comparison
Dec 31, 2023