Sealed Air Corporation (SEE)

Short-term

Turnover ratios

Sealed Air Corporation's inventory turnover ratio, which measures the efficiency of inventory management, has displayed fluctuations over the years. The company experienced a decline from 5.52 in 2020 to 4.47 in 2022, followed by a slight improvement to 5.22 in 2024. This indicates that the company's ability to turn its inventory into sales has been somewhat volatile, with a notable dip in 2022 but a recovery by 2024.

On the other hand, the receivables turnover ratio, representing how efficiently the company collects payments from customers, was not available for the years provided. This lack of data makes it challenging to assess the effectiveness of Sealed Air Corporation in managing its receivables.

Similarly, the payables turnover ratio, measuring how quickly the company pays its suppliers, was also not provided for the years in question. Without this information, it is difficult to evaluate the company's payment practices and relationships with its suppliers.

The working capital turnover ratio, which indicates how efficiently the company is utilizing its working capital to generate revenue, shows significant variations. The ratio surged from 9.54 in 2020 to 161.20 in 2022, signifying a substantial improvement in utilizing working capital for generating sales. However, this trend was not sustained, as the ratio decreased to 21.04 by 2024.

In conclusion, while Sealed Air Corporation has shown some efficiency in managing its inventory and working capital over the years, the lack of data for receivables and payables turnover ratios limits a comprehensive assessment of the company's overall activity ratios.

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Average number of days

Based on the provided data for Sealed Air Corporation's activity ratios:

1. Days of Inventory on Hand (DOH):
- The trend in DOH shows an increase from 66.12 days as of December 31, 2020, to 69.97 days as of December 31, 2024. This indicates that the company is taking longer to sell its inventory over this period.
- The highest DOH was recorded on December 31, 2022, at 81.73 days, suggesting potential issues with inventory management efficiency during that year.
- Overall, a higher DOH can tie up capital in inventory and may indicate inefficiencies in inventory turnover.

2. Days of Sales Outstanding (DSO):
- The data provided does not include any information on Days of Sales Outstanding (DSO) for any of the years from 2020 to 2024. DSO is a measure of how long it takes a company to collect its accounts receivable, and the absence of this data limits our ability to assess Sealed Air Corporation's collection efficiency.

3. Number of Days of Payables:
- Similar to DSO, data on the Number of Days of Payables is not provided for any of the years from 2020 to 2024. This ratio typically indicates how long a company takes to pay its suppliers and affects the company's liquidity and working capital management.

In conclusion, based on the available data, Sealed Air Corporation's inventory turnover has been gradually increasing, which might suggest potential challenges in managing inventory efficiently. However, without information on DSO and the Number of Days of Payables, a comprehensive analysis of the company's overall working capital management and operational efficiency is limited.

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Long-term

Sealed Air Corporation's long-term activity ratios indicate how efficiently the company is utilizing its assets.

1. Fixed Asset Turnover: This ratio measures how effectively the company is generating revenue from its fixed assets. Sealed Air Corporation's fixed asset turnover ratio has shown a consistent trend of improvement from 4.12 in 2020 to 4.27 in 2021, then slightly dropping to 4.19 in 2022. The absence of data for 2023 and 2024 prevents further analysis, but the general upward trend in the earlier years indicates that the company is effectively utilizing its fixed assets to generate sales.

2. Total Asset Turnover: This ratio reflects the company's ability to generate sales from all its assets. Sealed Air Corporation's total asset turnover ratio has displayed an increasing trend from 0.81 in 2020 to 0.89 in 2021 and further to 0.91 in 2022. However, there was a small decline in 2023 to 0.76, followed by a minor increase to 0.77 in 2024. Overall, the total asset turnover ratio suggests that Sealed Air Corporation is efficiently utilizing its total assets to generate sales, though there was a slight dip in 2023.

In conclusion, based on the available data, Sealed Air Corporation has shown a consistent improvement in both fixed asset turnover and total asset turnover ratios over the period analyzed, indicating efficient asset utilization for revenue generation. Additional data for 2023 and 2024 would provide a more comprehensive analysis of the company's long-term activity ratios.