Sonoco Products Company (SON)
Total asset turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 5,305,360 | 6,781,290 | 7,250,550 | 5,590,440 | 5,237,440 |
| Total assets | US$ in thousands | 12,507,800 | 7,191,960 | 7,089,910 | 5,085,330 | 5,277,260 |
| Total asset turnover | 0.42 | 0.94 | 1.02 | 1.10 | 0.99 |
December 31, 2024 calculation
Total asset turnover = Revenue ÷ Total assets
= $5,305,360K ÷ $12,507,800K
= 0.42
Total asset turnover is a key financial ratio that measures a company's efficiency in generating sales revenue from its assets. Sonoco Products Company's total asset turnover has fluctuated over the years, starting at 0.99 in December 2020, increasing to 1.10 by December 2021, and then slightly decreasing to 1.02 in December 2022. However, there was a notable decline to 0.94 by December 2023, followed by a significant drop to 0.42 by December 2024.
The decreasing trend in total asset turnover from 2022 to 2024 indicates a potential inefficiency in utilizing the company's assets to generate sales. A lower total asset turnover may suggest that Sonoco Products Company is struggling to efficiently deploy its assets to generate revenue. This could be due to various reasons, such as underutilization of assets, pricing pressure, or declining sales relative to the asset base.
It is important for Sonoco Products Company to closely monitor and address the factors affecting its total asset turnover in order to improve operational efficiency and maximize the utilization of its assets to drive revenue growth.
Peer comparison
Dec 31, 2024