Silgan Holdings Inc (SLGN)
Number of days of payables
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Payables turnover | 5.06 | 6.06 | 4.59 | 5.59 | 5.19 | |
| Number of days of payables | days | 72.17 | 60.18 | 79.61 | 65.32 | 70.28 |
December 31, 2023 calculation
Number of days of payables = 365 ÷ Payables turnover
= 365 ÷ 5.06
= 72.17
Silgan Holdings Inc.'s number of days of payables has shown fluctuation over the past five years. The trend indicates that the company takes, on average, around 70 to 80 days to pay its suppliers. The number of days of payables was relatively stable in 2019 and 2020, ranging from 70.28 to 72.25 days. However, in 2021, the number of days increased significantly to 86.93 days before decreasing to 66.28 days in 2022 and then increasing again to 78.61 days in 2023.
An increase in the number of days of payables can indicate that the company is taking longer to pay its suppliers, possibly signaling liquidity issues or attempts to improve cash flow by extending payment terms. Conversely, a decrease could suggest the company is improving its working capital management or negotiating better terms with suppliers.
Overall, a thorough analysis of Silgan Holdings Inc.'s financial performance, liquidity position, and supplier relationships would provide a more comprehensive understanding of the factors influencing the changes in the number of days of payables over the years.
Peer comparison
Dec 31, 2023