Sonoco Products Company (SON)
Number of days of payables
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Payables turnover | 8.47 | 8.72 | 9.02 | 8.60 | 8.21 | 7.91 | 7.05 | 7.04 | 7.94 | 7.54 | 7.91 | 8.73 | 9.10 | 7.02 | 6.47 | 6.84 | 6.93 | 6.81 | 6.74 | 4.39 | |
| Number of days of payables | days | 43.10 | 41.86 | 40.44 | 42.46 | 44.45 | 46.13 | 51.77 | 51.85 | 45.99 | 48.38 | 46.15 | 41.80 | 40.11 | 51.98 | 56.41 | 53.35 | 52.64 | 53.58 | 54.14 | 83.15 |
December 31, 2023 calculation
Number of days of payables = 365 ÷ Payables turnover
= 365 ÷ 8.47
= 43.10
Sonoco Products Co.'s number of days of payables has shown a declining trend over the past three quarters, decreasing from 51.44 days in Q4 2022 to 48.31 days in Q4 2023. This indicates that the company is taking fewer days to pay its suppliers or vendors.
The average number of days of payables for Q4 2023 to Q1 2023 is 46.6 days, which is lower compared to the average for Q3 2022 to Q2 2022, which was 62.6 days. This suggests that Sonoco Products Co. has become more efficient in managing its payables over the recent quarters.
A lower number of days of payables can have positive implications, such as improved liquidity, better cash flow management, and potentially stronger supplier relationships due to timely payments. However, it is essential to strike a balance between managing payables efficiently and maintaining good relationships with suppliers to ensure the sustainability of the business.
Peer comparison
Dec 31, 2023