Silgan Holdings Inc (SLGN)
Cash conversion cycle
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 69.95 | 59.44 | 75.56 | 71.17 | 68.74 | 65.81 | 87.14 | 72.18 | 52.36 | 57.89 | 89.62 | 75.11 | 61.27 | 61.01 | 75.53 | 68.11 | 60.99 | 63.16 | 78.83 | 67.73 |
| Days of sales outstanding (DSO) | days | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Number of days of payables | days | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Cash conversion cycle | days | 69.95 | 59.44 | 75.56 | 71.17 | 68.74 | 65.81 | 87.14 | 72.18 | 52.36 | 57.89 | 89.62 | 75.11 | 61.27 | 61.01 | 75.53 | 68.11 | 60.99 | 63.16 | 78.83 | 67.73 |
December 31, 2024 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 69.95 + — – —
= 69.95
The cash conversion cycle for Silgan Holdings Inc has fluctuated over the past few years, indicating variations in the company's efficiency in managing cash flow. The cycle measures the time it takes for the company to convert its investments in inventory into cash receipts from customers.
From the data provided, we can observe that the cash conversion cycle ranged from a low of 52.36 days on December 31, 2022, to a high of 89.62 days on June 30, 2022. Generally, a shorter cash conversion cycle indicates that the company is efficient in managing its working capital and turning its inventory into cash quickly.
The cycle seems to have peaked in terms of days on June 30, 2022, which might signal potential challenges in managing inventory or collecting receivables efficiently. However, it decreased significantly towards the end of 2024 to 59.44 days on September 30, 2024, indicating an improvement in the company's cash conversion processes.
Overall, Silgan Holdings Inc should continue monitoring its cash conversion cycle closely to ensure efficient management of its working capital and maximization of cash flow.
Peer comparison
Dec 31, 2024