Silgan Holdings Inc (SLGN)
Activity ratios
Short-term
Turnover ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Inventory turnover | 5.22 | 1.19 | 6.97 | 5.96 | 5.98 |
| Receivables turnover | — | — | — | — | — |
| Payables turnover | — | — | — | — | — |
| Working capital turnover | 21.28 | 161.32 | 8.27 | 7.03 | 7.74 |
Silgan Holdings Inc's inventory turnover ratio has remained relatively stable over the years, ranging from 5.22 to 6.97. This suggests that the company efficiently manages its inventory by converting it into sales. However, there was a significant drop in inventory turnover in 2023, which may indicate overstocking or potential issues with sales performance.
The receivables turnover ratio data is not available, indicating that information on how efficiently the company collects its receivables is not provided in the dataset. Without this data, it is challenging to assess the effectiveness of Silgan Holdings Inc in collecting payments from its customers.
Similarly, no information is available for the payables turnover ratio, which could have provided insights into the company's management of its trade payables and how quickly it pays its suppliers.
The working capital turnover ratio has shown fluctuations over the years, with a notable surge in 2023 to 161.32 before dropping to 21.28 in 2024. This indicates that the company is generating significant sales relative to its working capital but also suggests potential liquidity issues or changes in operational efficiency during these periods.
In conclusion, while Silgan Holdings Inc appears to manage its inventory efficiently, further data on receivables turnover and payables turnover would be needed to provide a more comprehensive analysis of its overall working capital management and liquidity position.
Average number of days
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 69.95 | 306.17 | 52.36 | 61.27 | 60.99 |
| Days of sales outstanding (DSO) | days | — | — | — | — | — |
| Number of days of payables | days | — | — | — | — | — |
Based on the provided data for Silgan Holdings Inc, let's analyze the activity ratios:
1. Days of Inventory on Hand (DOH):
- The DOH measures the average number of days it takes for a company to turn its inventory into sales.
- For Silgan Holdings Inc, we observe fluctuations in its inventory turnover over the years, ranging from 52.36 days in 2022 to a significantly higher 306.17 days in 2023.
- A lower DOH indicates better inventory management efficiency and faster conversion of inventory into sales, which can improve cash flow and profitability.
2. Days of Sales Outstanding (DSO):
- Unfortunately, the data provided does not include the Days of Sales Outstanding for Silgan Holdings Inc for any of the specified years.
- DSO is a measure of how long it takes for a company to collect payment after a sale. A lower DSO suggests quicker cash conversion and better cash flow management.
3. Number of Days of Payables:
- Similar to DSO, the data lacks information on Silgan Holdings Inc's Number of Days of Payables for the given years.
- A higher number of days of payables suggests that the company is taking longer to pay its suppliers, which can indicate either favorable credit terms or potential liquidity concerns.
In conclusion, based on the limited data provided, Silgan Holdings Inc has experienced varied performance in managing its inventory over the years, with notable changes in its Days of Inventory on Hand. Further information on Days of Sales Outstanding and Number of Days of Payables would provide a more complete picture of the company's overall activity ratios and efficiency in managing its working capital.
Long-term
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Fixed asset turnover | — | — | 3.00 | 2.85 | 2.67 |
| Total asset turnover | 0.68 | 0.79 | 0.87 | 0.73 | 0.75 |
Long-term activity ratios provide insights into how efficiently a company is utilizing its assets to generate sales. The Fixed Asset Turnover ratio for Silgan Holdings Inc has shown a positive trend over the years, increasing from 2.67 in 2020 to 3.00 in 2022. This indicates that the company is generating more revenue per dollar of fixed assets invested, which is a positive sign of operational efficiency.
However, the ratio for 2023 and 2024 is not available, so it is unclear whether this trend continued. It would be important to monitor this ratio in the future to assess whether the company is effectively managing its fixed assets.
On the other hand, the Total Asset Turnover ratio for Silgan Holdings Inc fluctuated over the years, declining from 0.75 in 2020 to 0.68 in 2024, with fluctuations in between. This suggests that the company's ability to generate sales from its total assets has been somewhat inconsistent.
Overall, while the Fixed Asset Turnover ratio shows improvement, the fluctuating trend in the Total Asset Turnover ratio indicates a need for further analysis to understand the company's asset management strategies and operational efficiency.