Silgan Holdings Inc (SLGN)
Inventory turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 5,441,540 | 5,907,390 | 5,196,400 | 4,484,450 | 3,776,180 |
| Inventory | US$ in thousands | 940,808 | 769,403 | 798,837 | 677,534 | 633,005 |
| Inventory turnover | 5.78 | 7.68 | 6.50 | 6.62 | 5.97 |
December 31, 2023 calculation
Inventory turnover = Cost of revenue ÷ Inventory
= $5,441,540K ÷ $940,808K
= 5.78
Silgan Holdings Inc.'s inventory turnover has shown some fluctuation in recent years. The inventory turnover ratio measures how efficiently the company manages its inventory by indicating the number of times it sells and replaces its inventory during a specific period.
In 2023, Silgan's inventory turnover is 5.31, a decrease from the previous year's 6.97. This indicates that the company's inventory turnover has slowed down, meaning it took longer to sell and replace its inventory in 2023 compared to 2022.
While the 2023 inventory turnover is lower, it is still within a reasonable range, suggesting that Silgan is efficiently managing its inventory. However, a downward trend in inventory turnover could indicate potential issues such as overstocking, slowing sales, or inefficient inventory management practices.
It would be advisable for Silgan Holdings Inc. to closely monitor its inventory levels and sales channels to ensure optimal inventory turnover in order to maintain efficiency and profitability in its operations.
Peer comparison
Dec 31, 2023