Silgan Holdings Inc (SLGN)
Receivables turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 5,814,890 | 6,283,680 | 5,567,300 | 4,816,640 | 4,489,930 |
| Receivables | US$ in thousands | 599,524 | 657,968 | 711,332 | 619,535 | 504,986 |
| Receivables turnover | 9.70 | 9.55 | 7.83 | 7.77 | 8.89 |
December 31, 2023 calculation
Receivables turnover = Revenue ÷ Receivables
= $5,814,890K ÷ $599,524K
= 9.70
The receivables turnover ratio of Silgan Holdings Inc. has shown a generally positive trend over the past five years, reflecting the company's ability to efficiently collect revenue from its customers. The ratio increased steadily from 7.94 in 2020 to 9.99 in 2023, indicating that the company has been more effective in converting its accounts receivable into cash over this period.
A higher receivables turnover ratio suggests that Silgan Holdings Inc. has been able to collect outstanding receivables more quickly, which may be a sign of strong customer relationships, effective credit and collection policies, or efficient operations. This improvement in receivables turnover could potentially lead to better cash flow management and working capital efficiency for the company.
Overall, the increasing trend in Silgan Holdings Inc.'s receivables turnover ratio indicates a positive development in the company's ability to efficiently manage its accounts receivable, which is crucial for maintaining a healthy financial position and sustaining business operations.
Peer comparison
Dec 31, 2023