Silgan Holdings Inc (SLGN)
Cash conversion cycle
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 69.95 | 306.17 | 52.36 | 61.27 | 60.99 |
| Days of sales outstanding (DSO) | days | — | — | — | — | — |
| Number of days of payables | days | — | — | — | — | — |
| Cash conversion cycle | days | 69.95 | 306.17 | 52.36 | 61.27 | 60.99 |
December 31, 2024 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 69.95 + — – —
= 69.95
The cash conversion cycle, which reflects Silgan Holdings Inc's efficiency in managing its working capital, has shown fluctuations over the years based on the provided data.
As of December 31, 2020, the cash conversion cycle stood at 60.99 days, indicating that the company took approximately 61 days to convert its investments in inventory and receivables into cash flow from sales.
The cycle increased slightly to 61.27 days by December 31, 2021, suggesting a marginal slowdown in the company's cash conversion efficiency. However, by December 31, 2022, there was a notable improvement as the cycle decreased to 52.36 days, signaling a more efficient management of working capital during that period.
A significant anomaly occurred by December 31, 2023, where the cash conversion cycle surged to 306.17 days. This dramatic increase in the cycle duration may indicate potential challenges in converting inventory and receivables into cash flow, which could be a cause for concern.
By December 31, 2024, the cycle decreased to 69.95 days, showing some recovery in the company's cash conversion efficiency compared to the previous year.
Overall, Silgan Holdings Inc's cash conversion cycle has exhibited variability over the years, with the company experiencing both improvements and setbacks in managing its working capital effectively. Monitoring and analyzing these fluctuations can provide insights into the company's financial health and operational performance.
Peer comparison
Dec 31, 2024