Silgan Holdings Inc (SLGN)
Fixed asset turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 5,814,890 | 6,283,680 | 5,567,300 | 4,816,640 | 4,489,930 |
| Property, plant and equipment | US$ in thousands | 1,961,580 | 1,931,500 | 1,993,880 | 1,840,760 | 1,570,330 |
| Fixed asset turnover | 2.96 | 3.25 | 2.79 | 2.62 | 2.86 |
December 31, 2023 calculation
Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $5,814,890K ÷ $1,961,580K
= 2.96
Silgan Holdings Inc.'s fixed asset turnover has fluctuated over the past five years, ranging from a low of 2.67 in 2020 to a high of 3.32 in 2022. The fixed asset turnover ratio measures how effectively the company generates revenue from its investment in fixed assets. A higher ratio indicates that the company is utilizing its fixed assets efficiently to generate sales revenue.
In 2023, Silgan Holdings Inc. reported a fixed asset turnover of 3.05, slightly lower than the previous year but still higher than in 2020 and 2019. This suggests that the company has been able to generate more sales relative to its investment in fixed assets compared to the previous year.
Overall, the trend in Silgan Holdings Inc.'s fixed asset turnover over the five-year period indicates that the company has been effectively utilizing its fixed assets to drive revenue growth. However, it is important to consider other financial metrics and factors to gain a comprehensive understanding of the company's overall financial performance and efficiency.
Peer comparison
Dec 31, 2023