Sealed Air Corporation (SEE)
Payables 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cost of revenue (ttm) | US$ in thousands | 3,847,600 | 3,856,900 | 3,855,200 | 3,872,100 | 3,869,000 | 3,943,200 | 3,979,400 | 3,927,500 | 3,852,900 | 3,713,300 | 3,543,000 | 3,376,500 | 3,293,900 | 3,247,000 | 3,240,800 | 3,262,200 | 3,226,300 | 3,217,900 | 3,212,100 | 3,221,100 |
| Payables | US$ in thousands | 764,600 | 746,100 | 793,300 | 826,300 | 865,600 | 912,500 | 987,800 | 958,100 | 959,900 | 918,300 | 880,700 | 814,000 | 754,200 | 718,800 | 724,100 | 715,300 | 738,500 | 712,700 | 753,000 | 769,100 |
| Payables turnover | 5.03 | 5.17 | 4.86 | 4.69 | 4.47 | 4.32 | 4.03 | 4.10 | 4.01 | 4.04 | 4.02 | 4.15 | 4.37 | 4.52 | 4.48 | 4.56 | 4.37 | 4.52 | 4.27 | 4.19 |
December 31, 2023 calculation
Payables turnover = Cost of revenue (ttm) ÷ Payables
= $3,847,600K ÷ $764,600K
= 5.03
Sealed Air Corp.'s payables turnover has been fluctuating over the past eight quarters. The payables turnover ratio measures how efficiently a company is managing its accounts payable by comparing the amount of purchases on credit to the average accounts payable balance.
Looking at the data provided, we can observe that the payables turnover ratio has generally been increasing from Q1 2022 to Q3 2023, indicating that Sealed Air Corp. has been managing its accounts payable more efficiently over time. This suggests that the company is taking fewer days to pay off its suppliers, which can be a positive signal of liquidity and strong supplier relationships.
In Q4 2023, the payables turnover ratio slightly decreased to 5.03 from the previous quarter's 5.17. While this decrease may indicate a slight slowdown in efficiency in managing accounts payable, the ratio is still relatively high compared to the previous periods, reflecting a strong ability to settle payables promptly.
Overall, Sealed Air Corp. has shown a trend of improving its management of accounts payable, which could positively impact its working capital management and cash flow position. It is important for the company to continue monitoring this ratio and ensure it maintains a balance in its payables turnover to support healthy liquidity and relationships with suppliers.
Peer comparison
Dec 31, 2023