Sonoco Products Company (SON)
Number of days of payables
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Payables turnover | 7.73 | 7.28 | 6.46 | 8.01 | 8.26 | |
| Number of days of payables | days | 47.21 | 50.13 | 56.52 | 45.55 | 44.17 |
December 31, 2023 calculation
Number of days of payables = 365 ÷ Payables turnover
= 365 ÷ 7.73
= 47.21
The number of days of payables for Sonoco Products Co. has shown a fluctuating trend over the past five years. In 2023, the company took approximately 48.31 days to pay its suppliers, marking a decrease from the previous year's figure of 51.44 days. This may indicate an improvement in the company's ability to settle its payables in a more efficient manner.
Comparing 2023 with 2021 and 2020, where the number of days of payables was 58.14 days and 46.76 days respectively, it can be observed that there have been fluctuations in the efficiency of the company's payable management over these years. However, the downward trend from 2021 to 2023 suggests progress in managing the company's obligations to suppliers more effectively.
Moreover, in comparison to 2019 when the company took 45.47 days to pay its payables, 2023 reflects a slight increase. This indicates that the company may be taking slightly longer to settle its payables in 2023 compared to the previous year.
Overall, the trend in the number of days of payables for Sonoco Products Co. indicates variations in the efficiency of the company's payable management over the years, with some improvement seen in 2023. It is essential for the company to continue monitoring and optimizing its payables management to ensure timely and effective payments to suppliers.
Peer comparison
Dec 31, 2023