Sealed Air Corporation (SEE)
Working capital turnover
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (ttm) | US$ in thousands | 5,392,600 | 5,397,300 | 5,434,000 | 5,469,700 | 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 |
| Total current assets | US$ in thousands | 1,891,800 | 2,059,500 | 2,050,900 | 1,992,800 | 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 |
| Total current liabilities | US$ in thousands | 1,635,500 | 1,592,900 | 1,574,100 | 1,502,800 | 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 |
| Working capital turnover | 21.04 | 11.57 | 11.40 | 11.16 | 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 |
December 31, 2024 calculation
Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $5,392,600K ÷ ($1,891,800K – $1,635,500K)
= 21.04
Sealed Air Corporation's working capital turnover has shown fluctuations over the years, ranging from as low as 9.54 to as high as 161.20. The working capital turnover ratio measures how efficiently a company is utilizing its working capital to generate sales revenue. A higher ratio indicates that the company is effectively using its working capital to generate sales.
The significant increase in working capital turnover from September 30, 2021, to December 31, 2021, and a further spike on December 31, 2022, suggest a rapid increase in sales relative to the company's working capital. However, such a sharp spike may be indicative of specific events or anomalies rather than a sustainable trend.
The downward trend observed from December 31, 2022, indicating a gradual decline in working capital turnover up to September 30, 2024, may suggest a decrease in sales relative to working capital, which could be a concern. It is important for Sealed Air Corporation to monitor this ratio closely as it could signify inefficiencies in managing its working capital or potential issues in generating sales.
Overall, Sealed Air Corporation should aim to strike a balance between optimizing working capital efficiency and maintaining sufficient liquidity to support its operations and growth. Regular monitoring and analysis of the working capital turnover ratio will be crucial for the company to make informed financial decisions and ensure sustainable business performance.
Peer comparison
Dec 31, 2024