Silgan Holdings Inc (SLGN)
Working capital turnover
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (ttm) | US$ in thousands | 5,814,900 | 5,938,100 | 6,118,960 | 6,254,140 | 6,283,680 | 6,273,100 | 5,960,430 | 5,767,570 | 5,567,310 | 5,356,900 | 5,193,640 | 5,047,850 | 4,867,430 | 4,715,910 | 4,576,480 | 4,493,170 | 4,489,920 | 4,512,120 | 4,497,780 | 4,463,720 |
| Total current assets | US$ in thousands | 2,348,980 | 2,661,820 | 2,698,460 | 2,625,010 | 2,132,650 | 2,332,230 | 2,553,150 | 2,281,770 | 2,295,850 | 2,181,370 | 2,053,260 | 1,819,240 | 1,799,190 | 1,822,090 | 1,827,720 | 1,982,340 | 1,406,810 | 1,633,310 | 1,659,850 | 1,494,840 |
| Total current liabilities | US$ in thousands | 2,311,860 | 1,915,560 | 1,879,630 | 1,844,120 | 1,437,860 | 1,681,410 | 1,960,040 | 1,716,960 | 1,508,520 | 2,041,090 | 1,315,160 | 1,155,110 | 1,191,620 | 1,242,340 | 1,363,130 | 1,643,830 | 1,018,530 | 1,617,780 | 1,696,890 | 1,298,780 |
| 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 |
December 31, 2023 calculation
Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $5,814,900K ÷ ($2,348,980K – $2,311,860K)
= 156.65
The working capital turnover ratio for Silgan Holdings Inc. has shown significant fluctuations over the past eight quarters.
In Q4 2023, the working capital turnover ratio surged to 161.32, indicating a substantial improvement in the efficiency of managing working capital to generate sales revenue. This could imply that the company efficiently utilized its current assets to support its operations and sales activities during this period.
However, in Q3 2023, the working capital turnover ratio dropped sharply to 8.18, reflecting a significant decline in the efficiency of converting working capital into sales. This may suggest that the company faced challenges in effectively managing its working capital to support its revenue generation activities.
The ratios for Q2 and Q1 2023 also remained relatively low at 7.66 and 8.18, respectively, indicating continued challenges in optimizing the utilization of working capital to drive sales during these periods.
Comparing the latest ratios to those of the prior year, there has been a noticeable decline in working capital turnover. In Q4 2022, the ratio was at 9.23, followed by 9.83 in Q3 2022, 10.24 in Q2 2022, and 10.41 in Q1 2022. This downward trend in the working capital turnover ratio over the quarters may raise concerns about the company's ability to efficiently manage its working capital resources to support its sales activities.
Overall, the fluctuating trend in Silgan Holdings Inc.'s working capital turnover ratios suggests varying levels of efficiency in utilizing working capital to generate sales revenue, warranting further analysis and potential strategic adjustments in working capital management practices.
Peer comparison
Dec 31, 2023