Sonoco Products Company (SON)
Receivables turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 6,905,480 | 7,401,800 | 5,720,440 | 5,349,080 | 5,501,240 |
| Receivables | US$ in thousands | 904,898 | 862,712 | 755,609 | 658,808 | 698,149 |
| Receivables turnover | 7.63 | 8.58 | 7.57 | 8.12 | 7.88 |
December 31, 2023 calculation
Receivables turnover = Revenue ÷ Receivables
= $6,905,480K ÷ $904,898K
= 7.63
The receivables turnover ratio for Sonoco Products Co. has fluctuated over the past five years, ranging from 6.57 in 2021 to 7.54 in 2022. In 2023, the ratio decreased to 6.70. This ratio indicates how efficiently the company is able to collect outstanding receivables from its customers. A higher turnover ratio generally suggests that the company is more effective in collecting receivables.
However, it's important to note that a rapidly increasing receivables turnover ratio could also indicate a tightening of credit terms which may have a negative impact on sales. On the other hand, a decreasing ratio could suggest potential issues with collecting receivables or a shift in customer payment behavior.
Overall, while the receivables turnover ratio for Sonoco Products Co. has shown some variation in recent years, further analysis would be necessary to understand the underlying reasons for these changes and their potential implications for the company's financial performance and liquidity.
Peer comparison
Dec 31, 2023