Sealed Air Corporation (SEE)
Working capital 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (ttm) | US$ in thousands | 5,488,900 | 5,517,300 | 5,535,900 | 5,573,100 | 5,641,900 | 5,767,500 | 5,773,800 | 5,684,300 | 5,533,800 | 5,343,200 | 5,173,700 | 4,996,400 | 4,903,200 | 4,861,200 | 4,842,500 | 4,852,300 | 4,791,100 | 4,752,500 | 4,720,200 | 4,714,400 |
| Total current assets | US$ in thousands | 1,963,300 | 2,122,800 | 2,213,900 | 2,067,100 | 2,116,800 | 2,031,200 | 2,011,100 | 1,947,000 | 2,069,600 | 1,970,900 | 1,806,700 | 1,759,500 | 1,881,500 | 1,667,400 | 1,632,100 | 1,560,200 | 1,564,000 | 1,591,400 | 1,576,600 | 1,555,200 |
| Total current liabilities | US$ in thousands | 1,509,000 | 1,719,900 | 1,850,000 | 1,732,800 | 2,081,800 | 1,877,000 | 1,505,400 | 1,482,900 | 2,007,300 | 1,925,400 | 1,405,900 | 1,326,400 | 1,367,400 | 1,313,200 | 1,354,700 | 1,367,800 | 1,436,200 | 1,502,300 | 1,587,400 | 1,481,100 |
| 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 |
December 31, 2023 calculation
Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $5,488,900K ÷ ($1,963,300K – $1,509,000K)
= 12.08
The working capital turnover ratio for Sealed Air Corp. has exhibited significant fluctuations over the past eight quarters. The ratio decreased from 16.67 in Q1 2023 to 12.08 in Q4 2023, indicating that the company's ability to efficiently utilize its working capital to generate sales revenue has declined. This downward trend is noteworthy, considering that the ratio was considerably higher in the previous quarters, notably at 161.20 in Q4 2022.
The abrupt decrease in working capital turnover from Q1 2023 to Q4 2023 suggests potential issues with managing inventory, receivables, and payables, impacting the company's overall operational efficiency. It is crucial for Sealed Air Corp. to closely monitor and effectively manage its working capital to sustain healthy liquidity levels and optimize its financial performance.
Additionally, the ratio's fluctuations over the examined periods highlight the importance of implementing strategies to enhance working capital management practices and improve operational effectiveness. By focusing on enhancing inventory turnover, accelerating receivables collection, and optimizing payables management, Sealed Air Corp. can potentially boost its working capital turnover ratio and drive better financial results in the future.
Peer comparison
Dec 31, 2023