Sonoco Products Company (SON)
Fixed asset turnover
| 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 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (ttm) | US$ in thousands | 6,825,810 | 6,976,700 | 7,162,630 | 7,381,000 | 7,401,430 | 7,143,520 | 6,683,310 | 6,138,990 | 5,719,930 | 5,619,660 | 5,509,310 | 5,390,170 | 5,348,310 | 5,297,960 | 5,341,660 | 5,458,660 | 5,502,880 | 5,562,970 | 5,575,100 | 5,598,550 |
| Property, plant and equipment | US$ in thousands | 1,906,140 | 1,826,230 | 1,747,120 | 1,717,620 | 1,710,400 | 1,627,280 | 1,628,820 | 1,640,770 | 1,297,500 | 1,232,070 | 1,233,060 | 1,212,520 | 1,244,110 | 1,227,120 | 1,235,500 | 1,236,830 | 1,286,840 | 1,249,760 | 1,233,620 | 1,224,140 |
| Fixed asset turnover | 3.58 | 3.82 | 4.10 | 4.30 | 4.33 | 4.39 | 4.10 | 3.74 | 4.41 | 4.56 | 4.47 | 4.45 | 4.30 | 4.32 | 4.32 | 4.41 | 4.28 | 4.45 | 4.52 | 4.57 |
December 31, 2023 calculation
Fixed asset turnover = Revenue (ttm) ÷ Property, plant and equipment
= $6,825,810K ÷ $1,906,140K
= 3.58
Sonoco Products Co.'s fixed asset turnover has shown variability over the last eight quarters. The fixed asset turnover ratio measures how efficiently the company is utilizing its fixed assets to generate revenue. A higher ratio indicates that the company is generating more revenue per dollar of fixed assets.
Analyzing the data, we observe that the fixed asset turnover ratio has fluctuated between 3.56 and 4.31. In Q2 2022, the ratio was 4.01, which increased to 4.20 in Q1 2023. It peaked at 4.24 in Q4 2022 and then exhibited a slight decline in subsequent quarters.
The trend indicates that Sonoco Products Co. has been effectively utilizing its fixed assets to generate revenue, as evidenced by the consistently high ratios above 4. However, the slight decline in the most recent quarters suggests a potential decrease in the efficiency of asset utilization.
Further analysis and comparison with industry peers or historical performance can provide additional insights into the company's operational efficiency and effectiveness in managing its fixed assets for revenue generation.
Peer comparison
Dec 31, 2023