Silgan Holdings Inc (SLGN)

Silgan Holdings Inc's current ratio has shown fluctuation over the last few years, ranging from a low of 1.02 as of December 31, 2023, to a high of 2.62 as of September 30, 2023. During the most recent period, the current ratio stood at 1.65 as of December 31, 2024. The current ratio measures the company's ability to cover its short-term obligations with its current assets, with a higher ratio indicating a stronger liquidity position.

In terms of the quick ratio, Silgan Holdings Inc has demonstrated a similar pattern of variability, reaching a low of 0.13 as of March 31, 2024, and peaking at 0.54 as of December 31, 2024. The quick ratio, which excludes inventories from current assets, provides a more stringent assessment of a company's ability to meet short-term obligations. A quick ratio above 1 indicates that the company can cover its short-term liabilities without relying on the sale of inventory.

The cash ratio for Silgan Holdings Inc has also displayed fluctuations, ranging from 0.13 as of June 30, 2024, to 0.54 as of December 31, 2024. The cash ratio focuses solely on the most liquid assets (cash and equivalents) compared to current liabilities, providing insight into the company's ability to settle short-term obligations immediately. A higher cash ratio indicates a stronger ability to meet immediate obligations without relying on other current assets.

Overall, analyzing these liquidity ratios provides valuable insights into Silgan Holdings Inc's ability to manage its short-term financial obligations and maintain a healthy liquidity position over the reporting periods.

---

Additional liquidity measure

The cash conversion cycle of Silgan Holdings Inc has shown fluctuations over the period from March 31, 2020 to December 31, 2024. The cash conversion cycle is a measure of the time it takes for a company to convert its investments in inventory and other resources into cash flows from sales.

Initially, the company's cash conversion cycle stood at around 67.73 days on March 31, 2020. It increased to 78.83 days on June 30, 2020, reflecting a potential delay in converting inventory and receivables into cash. However, the cycle improved to 60.99 days by December 31, 2020, indicating more efficient management of working capital.

The trend continued with fluctuations over the following years. There were instances of the cash conversion cycle increasing, such as on June 30, 2022, where it peaked at 89.62 days, indicating potential challenges in managing inventory and collecting receivables efficiently.

Conversely, the cycle decreased to 52.36 days on December 31, 2022, showing improvements in the company's ability to convert investments into cash. However, there were instances of volatility in the cycle, such as on June 30, 2024, where it increased to 75.56 days.

Overall, the cash conversion cycle of Silgan Holdings Inc experienced fluctuations over the period, indicating varying efficiencies in managing working capital components. It is essential for the company to focus on optimizing inventory levels, managing payment terms with customers, and enhancing collection processes to improve its cash conversion cycle and overall liquidity position.