Sealed Air Corporation (SEE)
Activity ratios
Short-term
Turnover ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Inventory turnover | 4.97 | 4.62 | 4.11 | 4.03 | 4.47 | 4.10 | 4.27 | 4.66 | 5.31 | 5.01 | 4.85 | 5.18 | 5.52 | 5.15 | 5.08 | 5.74 | 5.66 | 5.20 | 5.39 | 5.39 |
| Receivables turnover | 9.44 | 9.01 | 9.25 | 9.16 | 7.66 | 7.65 | 7.88 | 7.33 | 7.55 | 6.97 | 6.95 | 7.24 | 7.19 | 7.32 | 8.07 | 8.34 | 7.16 | 8.31 | 7.49 | 7.94 |
| 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 |
| Working capital turnover | 12.08 | 13.69 | 15.21 | 16.67 | 161.20 | 37.40 | 11.42 | 12.25 | 88.83 | 117.43 | 12.91 | 11.54 | 9.54 | 13.72 | 17.46 | 25.22 | 37.49 | 53.34 | — | 63.62 |
The activity ratios of Sealed Air Corp. provide insights into the efficiency of the company in managing its assets and liabilities.
1. Inventory turnover:
The inventory turnover ratio measures how efficiently the company is managing its inventory levels by indicating how many times a company sells and replaces its inventory in a given period. Sealed Air Corp. had a relatively stable inventory turnover ratio throughout 2023, ranging between 4.03 and 4.97. This suggests that the company is effectively managing its inventory and turning it into sales multiple times per year.
2. Receivables turnover:
The receivables turnover ratio reflects how efficiently the company is collecting its accounts receivable from customers. Sealed Air Corp.'s receivables turnover improved from 7.33 in Q1 2022 to 9.44 in Q4 2023. This indicates that the company has been more effective in collecting its outstanding receivables over the periods analyzed.
3. Payables turnover:
The payables turnover ratio evaluates how quickly a company pays its suppliers. Sealed Air Corp.'s payables turnover fluctuated between 4.10 and 5.17 in 2022 and 2023. A higher turnover ratio implies that the company is paying its suppliers more quickly, which could impact relationships with suppliers and available working capital.
4. Working capital turnover:
The working capital turnover ratio measures the efficiency of a company in generating sales revenue from its working capital. Sealed Air Corp.'s working capital turnover fluctuated significantly, from a high of 161.20 in Q4 2022 to a low of 11.42 in Q2 2022. Such drastic variations may indicate changes in the company's operational efficiency and how well it is utilizing its working capital to generate sales.
In conclusion, by analyzing these activity ratios, we can observe Sealed Air Corp.'s effectiveness in managing its inventory, receivables, payables, and working capital. The ratios provide valuable insights into the company's operational efficiency and financial performance.
Average number of days
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 73.45 | 78.95 | 88.88 | 90.65 | 81.73 | 89.08 | 85.55 | 78.41 | 68.75 | 72.84 | 75.28 | 70.51 | 66.12 | 70.92 | 71.88 | 63.57 | 64.52 | 70.13 | 67.74 | 67.69 |
| Days of sales outstanding (DSO) | days | 38.68 | 40.53 | 39.45 | 39.85 | 47.67 | 47.71 | 46.33 | 49.79 | 48.33 | 52.37 | 52.52 | 50.42 | 50.75 | 49.84 | 45.25 | 43.76 | 51.01 | 43.91 | 48.74 | 45.94 |
| Number of days of payables | days | 72.53 | 70.61 | 75.11 | 77.89 | 81.66 | 84.47 | 90.60 | 89.04 | 90.94 | 90.26 | 90.73 | 87.99 | 83.57 | 80.80 | 81.55 | 80.03 | 83.55 | 80.84 | 85.57 | 87.15 |
To analyze Sealed Air Corp.'s activity ratios, we will focus on the Days of Inventory on Hand (DOH), Days of Sales Outstanding (DSO), and Number of Days of Payables.
1. Days of Inventory on Hand (DOH):
- Sealed Air Corp.'s DOH has shown fluctuations over the past eight quarters, ranging from a low of 73.45 days in Q4 2023 to a high of 90.65 days in Q1 2023. This indicates that the company has been able to manage its inventory levels more efficiently in recent quarters, which could lead to lower carrying costs and reduced risk of obsolescence.
2. Days of Sales Outstanding (DSO):
- Sealed Air Corp.'s DSO has exhibited a decreasing trend over the last eight quarters, with Q4 2023 showing the lowest DSO at 38.68 days. A decreasing DSO suggests that the company is collecting its accounts receivable more quickly, which can improve cash flow and liquidity.
3. Number of Days of Payables:
- The number of days of payables for Sealed Air Corp. has been relatively stable, fluctuating between 70.61 days and 89.04 days over the past eight quarters. A higher number of days of payables may indicate that the company is taking longer to pay its suppliers, potentially improving its cash flow position.
In summary, Sealed Air Corp. has improved its inventory management efficiency, reduced the collection period for accounts receivable, and maintained a stable number of days of payables. These trends suggest that the company is effectively managing its working capital and may be in a strong financial position.
Long-term
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Fixed asset turnover | 3.88 | 3.98 | 3.93 | 3.99 | 4.42 | 4.69 | 4.63 | 4.54 | 4.49 | 4.42 | 4.30 | 4.24 | 4.12 | 4.28 | 4.34 | 4.40 | 4.20 | 4.26 | 4.50 | 4.59 |
| Total asset turnover | 0.76 | 0.75 | 0.74 | 0.76 | 0.91 | 0.95 | 0.95 | 0.93 | 0.89 | 0.87 | 0.86 | 0.84 | 0.81 | 0.83 | 0.84 | 0.86 | 0.83 | 0.84 | 0.90 | 0.91 |
Sealed Air Corp.'s long-term activity ratios depict the efficiency of the company in utilizing its assets to generate sales revenue. The fixed asset turnover ratio has shown a decreasing trend over the quarters, indicating a decline in the efficiency of the company in generating sales from its fixed assets. The ratio moved from 4.42 in Q4 2022 to 3.88 in Q4 2023, signaling a decrease in productivity in this aspect.
On the other hand, the total asset turnover ratio also exhibited a downward trajectory, indicating a decrease in the overall efficiency of the company in generating sales from all its assets. The ratio decreased from 0.91 in Q4 2022 to 0.76 in Q4 2023, reflecting a decline in asset utilization efficiency over the quarters.
These trends suggest that Sealed Air Corp. may need to assess its asset management strategies and consider optimizing the utilization of its fixed and total assets to improve its long-term operational efficiency and profitability.