Sonoco Products Company (SON)
Inventory turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 5,469,820 | 5,962,160 | 4,658,530 | 4,302,740 | 4,443,410 |
| Inventory | US$ in thousands | 773,501 | 1,095,560 | 562,113 | 450,691 | 503,808 |
| Inventory turnover | 7.07 | 5.44 | 8.29 | 9.55 | 8.82 |
December 31, 2023 calculation
Inventory turnover = Cost of revenue ÷ Inventory
= $5,469,820K ÷ $773,501K
= 7.07
The inventory turnover of Sonoco Products Co. has shown fluctuations over the past five years. The company's inventory turnover ratio was 6.91 in 2023, indicating that on average, the company sold and replaced its inventory approximately 6.91 times during the year. This is an increase from 5.30 in 2022 but a decrease from 8.06 in 2021.
A high inventory turnover ratio suggests that the company is efficiently managing its inventory levels by quickly selling and restocking products. Conversely, a low ratio may indicate overstocking or slow-moving inventory.
In 2023, Sonoco Products Co. experienced a significant improvement in its inventory turnover compared to the previous year, which could suggest better inventory management practices or increased sales efficiency. However, investors may want to monitor the trend over time to ensure sustained improvement or identify any potential issues affecting the company's inventory management.
Peer comparison
Dec 31, 2023