Silgan Holdings Inc (SLGN)
Working capital 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 current assets | US$ in thousands | 2,348,980 | 2,132,650 | 2,295,850 | 1,799,190 | 1,406,810 |
| Total current liabilities | US$ in thousands | 2,311,860 | 1,437,860 | 1,508,520 | 1,191,620 | 1,018,530 |
| Working capital turnover | 156.65 | 9.04 | 7.07 | 7.93 | 11.56 |
December 31, 2023 calculation
Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $5,814,890K ÷ ($2,348,980K – $2,311,860K)
= 156.65
The working capital turnover for Silgan Holdings Inc. has shown significant variability over the past five years. In 2023, the working capital turnover ratio surged to 161.32, a substantial increase compared to the previous year's ratio of 9.23. This sharp spike indicates that the company efficiently utilized its working capital to generate sales revenue during 2023.
In contrast, the ratios for 2021, 2020, and 2019 were 7.21, 8.10, and 11.56, respectively, reflecting lower levels of working capital efficiency in those years compared to 2023. It is essential to note the fluctuations in the efficiency of working capital management over the years, as evidenced by the significant variations in the ratios.
The considerable increase in the working capital turnover in 2023 suggests that Silgan Holdings Inc. may have implemented operational or strategic changes to boost efficiency and productivity. Further analysis would be needed to understand the specific factors contributing to this substantial increase in the working capital turnover ratio.
Peer comparison
Dec 31, 2023