Silgan Holdings Inc (SLGN)
Activity ratios
Short-term
Turnover ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Inventory turnover | 5.78 | 5.89 | 4.50 | 5.51 | 7.68 | 6.88 | 4.45 | 5.29 | 6.50 | 6.58 | 5.33 | 5.74 | 6.18 | 6.00 | 4.63 | 5.39 | 5.97 | 5.41 | 4.61 | 5.49 |
| Receivables turnover | 9.70 | 4.58 | 5.73 | 6.68 | 9.55 | 5.58 | 6.40 | 6.76 | 7.83 | 5.18 | 5.82 | 6.84 | 7.86 | 5.45 | 6.28 | 7.48 | 8.89 | 6.00 | 6.75 | 7.48 |
| Payables turnover | 5.06 | 8.31 | 7.49 | 8.12 | 6.06 | 8.50 | 6.34 | 6.34 | 4.59 | 6.59 | 6.66 | 7.19 | 5.22 | 6.87 | 6.32 | 7.45 | 5.19 | 6.91 | 6.34 | 7.02 |
| Working capital turnover | 156.65 | 7.96 | 7.47 | 8.01 | 9.04 | 9.64 | 10.05 | 10.21 | 7.07 | 38.19 | 7.04 | 7.60 | 8.01 | 8.13 | 9.85 | 13.27 | 11.56 | 290.54 | — | 22.77 |
Silgan Holdings Inc.'s activity ratios indicate the efficiency of the company in managing its assets and liabilities to generate sales.
- Inventory turnover has shown a fluctuating trend over the quarters, with Q4 2022 having the highest turnover at 6.97 and Q2 2023 recording the lowest at 4.19. This suggests varying levels of efficiency in managing and selling inventory during the periods.
- Receivables turnover has also displayed variability, ranging from 4.71 in Q3 2023 to 9.99 in Q4 2023. Higher values indicate a quicker collection of receivables, with Q4 2023 showing a notable improvement.
- Payables turnover reveals fluctuations as well, with Q3 2023 having the highest turnover at 7.82 and Q4 2022 the lowest at 5.51. This ratio indicates the speed at which the company pays its suppliers.
- Working capital turnover has been particularly volatile, with a significant spike in Q4 2023 at 161.32 compared to the other quarters. Such a high turnover can be indicative of efficient utilization of working capital to generate sales revenue.
Overall, while there are fluctuations in these activity ratios quarter to quarter, a general trend or pattern may emerge when analyzing the data over a more extended period. It is important for Silgan Holdings Inc. to monitor these ratios continually to ensure optimal management of its resources and to enhance its overall operational effectiveness.
Average number of days
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 63.11 | 61.94 | 81.09 | 66.22 | 47.54 | 53.07 | 81.95 | 68.98 | 56.11 | 55.45 | 68.43 | 63.60 | 59.06 | 60.80 | 78.84 | 67.73 | 61.19 | 67.50 | 79.18 | 66.47 |
| Days of sales outstanding (DSO) | days | 37.63 | 79.65 | 63.68 | 54.63 | 38.22 | 65.40 | 57.03 | 53.97 | 46.64 | 70.43 | 62.67 | 53.37 | 46.46 | 66.98 | 58.16 | 48.80 | 41.05 | 60.78 | 54.10 | 48.78 |
| Number of days of payables | days | 72.17 | 43.94 | 48.71 | 44.97 | 60.18 | 42.93 | 57.57 | 57.60 | 79.61 | 55.36 | 54.84 | 50.77 | 69.96 | 53.15 | 57.75 | 48.97 | 70.28 | 52.85 | 57.61 | 52.01 |
Silgan Holdings Inc.'s activity ratios provide insights into how efficiently the company is managing its working capital and operating cycle.
Days of inventory on hand (DOH) measures how long it takes for inventory to be sold. The trend for Silgan is fluctuating, with an increase in Q2 2023 compared to the previous quarter. This indicates that inventory turnover has slowed down.
Days of sales outstanding (DSO) shows how long it takes customers to pay their invoices. Silgan's DSO has been volatile, but it improved significantly in Q4 2023 compared to the previous quarter. A lower DSO suggests a faster collection of receivables.
Number of days of payables reflects how long it takes the company to pay its suppliers. Silgan's payables period has been inconsistent, with an increase observed in Q4 2022. However, it improved in Q3 2023 compared to the previous quarter, indicating better management of payables.
Overall, Silgan Holdings Inc. should focus on improving its inventory turnover by controlling inventory levels effectively and continue to manage its receivables and payables efficiently to optimize its working capital management.
Long-term
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 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 |
| Total asset turnover | 0.76 | 0.76 | 0.77 | 0.80 | 0.86 | 0.83 | 0.76 | 0.75 | 0.72 | 0.71 | 0.77 | 0.78 | 0.75 | 0.73 | 0.72 | 0.81 | 0.91 | 0.89 | 0.88 | 0.91 |
To analyze Silgan Holdings Inc.'s long-term activity ratios, we will focus on the fixed asset turnover and total asset turnover ratios over the past eight quarters.
1. Fixed Asset Turnover: This ratio indicates how effectively the company is utilizing its fixed assets to generate revenue. A higher fixed asset turnover ratio suggests better efficiency in utilizing fixed assets.
- Silgan Holdings Inc.'s fixed asset turnover has been relatively stable over the past eight quarters, ranging from 2.97 to 3.39. This indicates that the company has been efficiently using its fixed assets to generate sales revenue during this period.
2. Total Asset Turnover: This ratio reflects how efficiently the company is utilizing all its assets to generate sales. A higher total asset turnover ratio implies efficient asset utilization in generating revenue.
- The total asset turnover ratio for Silgan Holdings Inc. has ranged from 0.76 to 0.87 over the past eight quarters. Although there has been some fluctuation, the company's total asset turnover has generally been consistent. This indicates that the company has been effectively using its total assets to generate sales revenue.
In conclusion, based on the analysis of Silgan Holdings Inc.'s long-term activity ratios, the company has demonstrated consistent efficiency in utilizing both fixed assets and total assets to generate revenue over the past eight quarters. This indicates sound operational performance and effective asset management practices within the organization.