Silgan Holdings Inc (SLGN)
Payables 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 |
| Payables | US$ in thousands | 1,075,910 | 974,030 | 1,133,320 | 802,541 | 727,053 |
| Payables turnover | 5.06 | 6.06 | 4.59 | 5.59 | 5.19 |
December 31, 2023 calculation
Payables turnover = Cost of revenue ÷ Payables
= $5,441,540K ÷ $1,075,910K
= 5.06
Silgan Holdings Inc.'s payables turnover ratio measures the efficiency with which the company manages its accounts payable by evaluating how many times within a specific period the company pays off its suppliers.
The trend analysis of Silgan's payables turnover ratio shows fluctuations over the past five years, with values of 4.64 in 2023, 5.51 in 2022, 4.20 in 2021, 5.05 in 2020, and 5.19 in 2019.
The decreasing trend between 2022 and 2023 might indicate that the company took longer to pay off its suppliers in 2023 compared to the previous year. This could suggest either a change in payment terms negotiated with suppliers or potential cash flow constraints that led to delays in settling obligations.
Overall, while a higher payables turnover ratio generally indicates more efficient management of payables, it's essential to consider the reasons behind significant changes in the ratio to understand the company's financial health and relationships with suppliers.
Peer comparison
Dec 31, 2023