Sonoco Products Company (SON)
Days of inventory on hand (DOH)
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Inventory turnover | 4.89 | 6.86 | 7.11 | 7.06 | 6.91 | 6.55 | 5.93 | 5.32 | 5.27 | 5.53 | 5.39 | 5.59 | 8.06 | 8.40 | 8.64 | 8.92 | 9.30 | 9.31 | 7.99 | 8.54 | |
| DOH | days | 74.72 | 53.22 | 51.33 | 51.68 | 52.81 | 55.71 | 61.56 | 68.63 | 69.31 | 66.02 | 67.72 | 65.31 | 45.31 | 43.44 | 42.26 | 40.91 | 39.25 | 39.20 | 45.69 | 42.73 |
December 31, 2024 calculation
DOH = 365 ÷ Inventory turnover
= 365 ÷ 4.89
= 74.72
Based on the data provided for Sonoco Products Company, the days of inventory on hand (DOH) have shown some fluctuations over the past few years.
From March 31, 2020, to December 31, 2021, the DOH remained relatively stable, fluctuating between 39.20 days and 45.31 days. This indicates that the company managed its inventory efficiently during this period.
However, starting from March 31, 2022, there was a significant increase in the DOH, reaching a peak of 69.31 days by December 31, 2022. This substantial increase suggests that the company might have been experiencing challenges in managing its inventory levels effectively, leading to an accumulation of inventory relative to its sales.
Subsequently, from March 31, 2023, to December 31, 2024, the DOH decreased gradually, indicating potential inventory management improvements. By December 31, 2024, the DOH stood at 74.72 days, which was higher compared to the earlier periods.
Overall, Sonoco Products Company's trend in DOH reflects fluctuations in inventory management efficiency, with a notable increase in inventory holding during the period from March 31, 2022, to December 31, 2022, followed by a gradual decline in the subsequent periods up to December 31, 2024. This analysis highlights the importance of closely monitoring inventory levels to optimize working capital and operational efficiency.
Peer comparison
Dec 31, 2024