Sonoco Products Company (SON)
Fixed asset turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 5,305,360 | 6,781,290 | 7,250,550 | 5,590,440 | 5,237,440 |
| Property, plant and equipment | US$ in thousands | — | — | 2,007,180 | 1,297,500 | 1,244,110 |
| Fixed asset turnover | — | — | 3.61 | 4.31 | 4.21 |
December 31, 2024 calculation
Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $5,305,360K ÷ $—K
= —
Fixed asset turnover is a financial ratio that measures how efficiently a company utilizes its fixed assets to generate sales revenue. Sonoco Products Company's fixed asset turnover has exhibited fluctuations over the years.
In 2020, the fixed asset turnover was 4.21, indicating that for every dollar invested in fixed assets, the company generated $4.21 in sales revenue. The slight increase to 4.31 in 2021 suggests improved efficiency in asset utilization.
However, there was a decrease in the fixed asset turnover to 3.61 in 2022, which may indicate a decline in the company's ability to generate sales from its fixed assets efficiently.
The absence of data for 2023 and 2024 makes it difficult to assess the trend further. It could be that there were changes in the company's fixed asset base or revenue generation during these years.
Overall, Sonoco Products Company should monitor its fixed asset turnover ratio closely to ensure optimal utilization of fixed assets and strive for consistency in generating revenue from these assets.
Peer comparison
Dec 31, 2024