Silgan(Slgn) Financials: Receivables Turnover Compared To Industry Average, Plus Other Key Ratios
Growth Trend (Last 5 Years)
Growth - receivables turnover
This chart shows the historical trend of receivables turnover for SLGN compared to its industry average over the recent years.
Ratio Definition and Interpretation
Name: Receivables Turnover
Definition: Receivables turnover tells you how quickly the company collects payments from customers after making sales on credit. A high turnover means customers pay on time and cash flows smoothly. Slow turnover suggests delayed collections, which can create cash shortages and financing stress.
Interpretation:
• In '2021', SLGN's receivables turnover was 7.98, showing efficiency in collecting outstanding receivables. Industry average for Containers/Packaging in '2021' stood at 6.57.
• In '2022', SLGN's receivables turnover was 9.36, showing efficiency in collecting outstanding receivables. The increase since '2021' reflects strengthening financial performance. Industry average for Containers/Packaging in '2022' stood at 5.84. Industry average declined by 0.73 from previous year.
• In '2023', SLGN's receivables turnover was 9.52, showing efficiency in collecting outstanding receivables. The increase since '2022' reflects strengthening financial performance. Industry average for Containers/Packaging in '2023' stood at 6.51. Industry average increased by 0.67 compared to previous year.
• In '2024', SLGN's receivables turnover was 9.81, showing efficiency in collecting outstanding receivables. The increase since '2023' reflects strengthening financial performance. Industry average for Containers/Packaging in '2024' stood at 7.02. Industry average increased by 0.52 compared to previous year.
Overall, SLGN's receivables turnover has steadily improved over the past 4 years.
Formula: Receivables Turnover = Net Credit Sales / Average Accounts Receivable
Good Range: Ranges 5 to 15 depending on credit terms.