Smurfit WestRock plc (SW)
Activity ratios
Short-term
Turnover ratios
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Dec 31, 2022 | Jun 30, 2022 | Dec 31, 2021 | |
|---|---|---|---|---|---|---|---|---|---|---|
| Inventory turnover | 5.36 | 4.59 | — | — | 13.84 | — | 15.87 | 14.10 | — | — |
| Receivables turnover | — | — | — | — | — | — | — | — | — | — |
| Payables turnover | — | — | — | — | — | — | — | — | — | — |
| Working capital turnover | 8.77 | 6.34 | 1,208,891.43 | — | 15.20 | — | 17.03 | 17.16 | — | — |
Smurfit WestRock plc's inventory turnover ratio has fluctuated over the periods presented. It was not available for December 2021 and June 2022, but for December 2022 and June 2023, it stood at 14.10 and 15.87, respectively. The ratio then dropped to 13.84 by December 2023 and remained low at 4.59 for September 2024, showing a decrease in the efficiency of managing inventory. However, there was a slight improvement by December 2024, with the ratio at 5.36, indicating a faster turnover of inventory compared to the previous period.
The receivables turnover ratio was not provided for any of the periods, suggesting a lack of data available to assess the efficiency of collecting receivables.
Similarly, the payables turnover ratio was not disclosed, indicating a lack of information on the efficiency of paying suppliers.
Regarding the working capital turnover ratio, it was not available for December 2021 and June 2022. For December 2022 and June 2023, the ratio was 17.16 and 17.03, respectively, reflecting a relatively consistent turnover of working capital during this period. However, there was no data for September 2023. By December 2023, the ratio decreased to 15.20, indicating a decline in the efficiency of utilizing working capital. Notably, for June 2024, there was a significant increase in the ratio to 1,208,891.43, possibly due to a unique financial event or irregularity. This was followed by a sharp drop to 6.34 in September 2024 and a slight increase to 8.77 by December 2024, suggesting some volatility and fluctuations in working capital efficiency throughout the periods analyzed.
Average number of days
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Dec 31, 2022 | Jun 30, 2022 | Dec 31, 2021 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 68.15 | 79.51 | — | — | 26.38 | — | 23.00 | 25.88 | — | — |
| Days of sales outstanding (DSO) | days | — | — | — | — | — | — | — | — | — | — |
| Number of days of payables | days | — | — | — | — | — | — | — | — | — | — |
Smurfit WestRock plc's activity ratios provide insights into its efficiency in managing inventory, collecting receivables, and paying its creditors.
1. Days of Inventory on Hand (DOH):
- Smurfit WestRock's inventory turnover has shown variance over the years.
- As of December 31, 2022, the company held inventory for approximately 25.88 days before selling it, indicating efficient inventory management.
- The DOH decreased to 23.00 days by June 30, 2023, demonstrating potential improvements in inventory turnover.
- In the subsequent periods, the DOH data is not available, suggesting a need for more recent information to assess inventory management trends accurately.
2. Days of Sales Outstanding (DSO):
- The DSO data for Smurfit WestRock is not provided for any of the reporting periods, making it challenging to evaluate the company's efficiency in collecting receivables.
- Without DSO data, it is challenging to assess the company's accounts receivable turnover and the effectiveness of its credit policies.
3. Number of Days of Payables:
- Similar to DSO, the information on the number of days of payables is not available for any of the reporting periods.
- Absence of payables data hinders the ability to determine how long Smurfit WestRock takes to pay its suppliers, impacting the assessment of the company's liquidity and working capital management.
Overall, detailed data on DSO and payables are needed to provide a comprehensive analysis of Smurfit WestRock's activity ratios, and more up-to-date information would enhance the evaluation of the company's operational efficiency and financial performance.
Long-term
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Dec 31, 2022 | Jun 30, 2022 | Dec 31, 2021 | |
|---|---|---|---|---|---|---|---|---|---|---|
| Fixed asset turnover | — | — | — | — | — | — | — | — | — | — |
| Total asset turnover | 0.55 | 0.48 | 676,979.20 | — | 1.67 | — | 2.10 | 2.04 | — | — |
Smurfit WestRock plc's fixed asset turnover ratio shows no data available for the periods provided, suggesting a lack of information regarding how efficiently the company is utilizing its fixed assets to generate sales revenue.
In terms of total asset turnover, the company experienced fluctuations in its performance over the periods indicated. The ratio was not available for December 31, 2021, and significant improvements were seen from 2.04 for December 31, 2022, to 2.10 for June 30, 2023. However, there was a decline to 1.67 by December 31, 2023, indicating a potential decrease in the company's ability to generate sales relative to its total assets.
The ratios for subsequent periods show extreme values, such as 676,979.20 for June 30, 2024, 0.48 for September 30, 2024, and 0.55 for December 31, 2024. These outlier values could be due to data entry errors or irregularities in the financial information. It is essential for the company to ensure the accuracy and consistency of its financial data to provide a clear understanding of its long-term activity efficiency.
Overall, based on the available data, Smurfit WestRock plc's total asset turnover ratios indicate mixed performance, with a need for further analysis to understand the reasons behind the fluctuations and outliers observed.