Silgan Holdings Inc (SLGN)
Fixed asset 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 | 5,814,900 | 5,938,100 | 6,118,960 | 6,254,140 | 6,283,680 | 6,273,100 | 5,960,430 | 5,767,570 | 5,567,310 | 5,356,900 | 5,193,640 | 5,047,850 | 4,867,430 | 4,715,910 | 4,576,480 | 4,493,170 | 4,489,920 | 4,512,120 | 4,497,780 | 4,463,720 |
| Property, plant and equipment | US$ in thousands | 1,961,580 | 1,911,640 | 1,934,190 | 1,930,000 | 1,931,500 | 1,886,600 | 1,932,800 | 1,979,680 | 1,993,880 | 1,963,350 | 1,832,880 | 1,811,590 | 1,840,760 | 1,785,790 | 1,729,480 | 1,553,870 | 1,570,330 | 1,522,540 | 1,523,850 | 1,511,720 |
| Fixed asset turnover | 2.96 | 3.11 | 3.16 | 3.24 | 3.25 | 3.33 | 3.08 | 2.91 | 2.79 | 2.73 | 2.83 | 2.79 | 2.64 | 2.64 | 2.65 | 2.89 | 2.86 | 2.96 | 2.95 | 2.95 |
December 31, 2023 calculation
Fixed asset turnover = Revenue (ttm) ÷ Property, plant and equipment
= $5,814,900K ÷ $1,961,580K
= 2.96
Silgan Holdings Inc.'s fixed asset turnover ratio has shown a relatively stable trend over the past eight quarters, ranging from 2.97 to 3.39. The fixed asset turnover measures how efficiently the company generates sales from its investment in fixed assets.
The decreasing trend from Q1 2022 to Q4 2023 indicates that the company is generating less revenue for each dollar invested in fixed assets. This may suggest potential inefficiencies in asset utilization or a slowdown in the company's operational performance. However, the ratio has remained above 3 for most quarters, indicating that Silgan Holdings Inc. has been effectively utilizing its fixed assets to generate revenue.
Overall, Silgan Holdings Inc. should continue to monitor its fixed asset turnover ratio to ensure efficient utilization of its fixed assets and sustainable revenue generation.
Peer comparison
Dec 31, 2023