Sonoco Products Company (SON)
Inventory 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cost of revenue (ttm) | US$ in thousands | 5,991,590 | 6,064,360 | 6,220,010 | 6,414,470 | 6,724,260 | 7,029,300 | 6,619,330 | 6,141,420 | 5,725,150 | 5,175,920 | 5,069,520 | 4,940,690 | 4,885,720 | 3,554,518 | 3,584,978 | 3,682,968 | 3,729,118 | 3,711,260 | 3,737,600 | 2,508,197 |
| Inventory | US$ in thousands | 773,501 | 826,032 | 942,542 | 1,083,000 | 1,095,560 | 1,016,140 | 974,491 | 868,251 | 562,113 | 530,111 | 503,932 | 474,071 | 450,691 | 445,827 | 523,855 | 500,096 | 503,808 | 497,634 | 512,249 | 515,665 |
| Inventory turnover | 7.75 | 7.34 | 6.60 | 5.92 | 6.14 | 6.92 | 6.79 | 7.07 | 10.19 | 9.76 | 10.06 | 10.42 | 10.84 | 7.97 | 6.84 | 7.36 | 7.40 | 7.46 | 7.30 | 4.86 |
December 31, 2023 calculation
Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $5,991,590K ÷ $773,501K
= 7.75
The inventory turnover of Sonoco Products Co. has shown a generally positive trend over the past eight quarters, indicating efficient management of inventory levels. The company's inventory turnover ratio has ranged from a low of 5.30 in Q4 2022 to a high of 6.91 in Q4 2023.
A higher inventory turnover ratio typically suggests that the company is selling its inventory more quickly, which can be a sign of effective inventory management and potential profitability. Sonoco Products Co. has demonstrated a consistent ability to turn over its inventory efficiently, with ratios generally above 5.
Overall, the trend in inventory turnover for Sonoco Products Co. appears to be stable and reflective of effective management practices in managing its inventory levels. However, it may be beneficial for the company to continue monitoring and optimizing its inventory turnover to ensure optimal efficiency and profitability in its operations.
Peer comparison
Dec 31, 2023
Dec 31, 2023