Silgan Holdings Inc (SLGN)
Inventory turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 4,842,920 | 1,121,600 | 5,363,700 | 4,758,700 | 4,054,500 |
| Inventory | US$ in thousands | 928,056 | 940,808 | 769,400 | 798,800 | 677,500 |
| Inventory turnover | 5.22 | 1.19 | 6.97 | 5.96 | 5.98 |
December 31, 2024 calculation
Inventory turnover = Cost of revenue ÷ Inventory
= $4,842,920K ÷ $928,056K
= 5.22
Silgan Holdings Inc's inventory turnover ratio has demonstrated fluctuation over the last five years. In 2020 and 2021, the company maintained relatively stable inventory turnover ratios of 5.98 and 5.96, respectively. However, in 2022, there was a notable increase to 6.97, indicating a more efficient management of inventory during that period.
The inventory turnover ratio significantly dropped to 1.19 in 2023, suggesting that Silgan Holdings Inc may have faced challenges in managing its inventory effectively or experienced difficulties in selling its products during that year. This sharp decrease could be a cause for concern as it may indicate potential issues with inventory control or demand forecasting.
In 2024, the inventory turnover ratio improved to 5.22, indicating a rebound in inventory management efficiency compared to the previous year. Overall, Silgan Holdings Inc's inventory turnover ratios show variability, and it is essential for the company to consistently monitor and improve its inventory management practices to optimize operational performance and financial health.
Peer comparison
Dec 31, 2024