Sealed Air Corporation (SEE)
Working capital turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 5,488,900 | 5,641,900 | 5,533,800 | 4,903,200 | 4,791,100 |
| Total current assets | US$ in thousands | 1,963,300 | 2,116,800 | 2,069,600 | 1,881,500 | 1,564,000 |
| Total current liabilities | US$ in thousands | 1,509,000 | 2,081,800 | 2,007,300 | 1,367,400 | 1,436,200 |
| Working capital turnover | 12.08 | 161.20 | 88.83 | 9.54 | 37.49 |
December 31, 2023 calculation
Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $5,488,900K ÷ ($1,963,300K – $1,509,000K)
= 12.08
The working capital turnover ratio measures how efficiently a company is utilizing its working capital to generate sales revenue. A higher ratio indicates a more efficient use of working capital.
Analyzing the trend of Sealed Air Corp.'s working capital turnover over the past five years, we observe significant fluctuations. In 2023, the working capital turnover ratio dropped to 12.08 from the exceptionally high ratio of 161.20 in 2022. This sharp decline suggests a substantial decrease in the efficiency of the company's working capital management in generating sales. However, it is important to note that the 2022 figure appears to be an outlier, possibly due to specific circumstances or calculation anomalies.
In 2021, the working capital turnover ratio decreased to 88.83 from 9.54 in 2020, indicating a significant improvement in efficiency. This improvement was followed by a slight decrease to 37.49 in 2019. Overall, Sealed Air Corp. has shown varying levels of efficiency in utilizing its working capital to drive sales over the last five years.
Further investigation into the reasons behind the fluctuations in the working capital turnover ratio would be necessary to assess the company's working capital management practices thoroughly. Additionally, comparing this ratio with industry benchmarks and competitors could provide valuable insights into Sealed Air Corp.'s relative performance in this area.
Peer comparison
Dec 31, 2023