Sealed Air Corporation (SEE)
Payables turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 3,847,600 | 3,869,000 | 3,852,900 | 3,293,900 | 3,226,300 |
| Payables | US$ in thousands | 764,600 | 865,600 | 959,900 | 754,200 | 738,500 |
| Payables turnover | 5.03 | 4.47 | 4.01 | 4.37 | 4.37 |
December 31, 2023 calculation
Payables turnover = Cost of revenue ÷ Payables
= $3,847,600K ÷ $764,600K
= 5.03
Sealed Air Corp.'s payables turnover ratio has shown a fluctuating trend over the past five years. The ratio increased from 4.37 in 2019 to 4.37 in 2020, but then saw a significant jump to 4.01 in 2021. Subsequently, there was a notable increase to 4.47 in 2022 and a further rise to 5.03 in 2023.
The higher payables turnover ratio in 2023 indicates that Sealed Air Corp. is taking fewer days to pay its suppliers compared to the previous years. This could be a positive sign as it may suggest improved efficiency in managing its accounts payable, potentially negotiating better terms with suppliers, or making payments in a timelier manner.
However, a high payables turnover ratio may also indicate that the company is stretching its payment terms too far, which could strain relationships with suppliers or indicate potential liquidity issues. Further analysis of the company's payables management and overall financial health is recommended to fully understand the implications of the increasing payables turnover ratio.
Peer comparison
Dec 31, 2023