Sonoco Products Company (SON)
Receivables 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (ttm) | US$ in thousands | 6,825,810 | 6,976,700 | 7,162,630 | 7,381,000 | 7,401,430 | 7,143,520 | 6,683,310 | 6,138,990 | 5,719,930 | 5,619,660 | 5,509,310 | 5,390,170 | 5,348,310 | 5,297,960 | 5,341,660 | 5,458,660 | 5,502,880 | 5,562,970 | 5,575,100 | 5,598,550 |
| Receivables | US$ in thousands | 904,898 | 964,054 | 888,190 | — | 862,712 | — | — | — | 755,609 | — | — | — | — | — | — | — | — | — | — | — |
| Receivables turnover | 7.54 | 7.24 | 8.06 | — | 8.58 | — | — | — | 7.57 | — | — | — | — | — | — | — | — | — | — | — |
December 31, 2023 calculation
Receivables turnover = Revenue (ttm) ÷ Receivables
= $6,825,810K ÷ $904,898K
= 7.54
The receivables turnover ratio measures how efficiently Sonoco Products Co. is collecting payments from its customers. A higher ratio indicates that the company is collecting payments more quickly.
Analyzing the trend of the receivables turnover ratio over the past eight quarters, we observe fluctuations in the ratio. In Q4 2023, the ratio stood at 6.70, which was slightly higher than the previous quarter at 6.41. This implies that Sonoco Products Co. collected payments from its customers more efficiently in Q4 2023 compared to Q3 2023.
Looking back further, the receivables turnover ratio has shown variability over the quarters, with some periods of improvement and others showing a decline. In general, the ratio has been relatively stable, ranging between 5.41 and 7.54 over the past two years.
Overall, while the receivables turnover ratio of Sonoco Products Co. has experienced some fluctuations, it remains within a reasonable range, indicating that the company is managing its receivables effectively. However, further analysis, in conjunction with other financial metrics, would provide a more holistic view of the company's overall financial health.
Peer comparison
Dec 31, 2023