Silgan Holdings Inc (SLGN)
Total asset 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 |
| Total assets | US$ in thousands | 7,611,240 | 7,345,760 | 7,770,850 | 6,511,590 | 4,931,060 |
| Total asset turnover | 0.76 | 0.86 | 0.72 | 0.74 | 0.91 |
December 31, 2023 calculation
Total asset turnover = Revenue ÷ Total assets
= $5,814,890K ÷ $7,611,240K
= 0.76
Total asset turnover measures the efficiency of Silgan Holdings Inc. in generating revenue from its total assets. The trend of total asset turnover over the past five years shows some fluctuations. In 2019, the ratio was at its highest at 0.91, indicating that the company generated $0.91 in revenue for every dollar of assets. However, in subsequent years, the ratio declined, reaching its lowest point in 2021 at 0.73, before slightly improving to 0.79 in 2023.
The decreasing trend in total asset turnover may suggest that Silgan Holdings Inc. is becoming less efficient in utilizing its assets to generate revenue. A lower total asset turnover could indicate that the company is facing challenges in effectively utilizing its assets to drive sales, possibly due to increased asset base without proportional revenue growth or inefficient asset management. The company may need to assess its asset utilization strategies to improve efficiency and productivity in the future.
Peer comparison
Dec 31, 2023