Sonoco Products Company (SON)
Working capital 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 |
| Total current assets | US$ in thousands | 2,050,360 | 2,361,250 | 1,658,680 | 1,830,550 | 1,521,200 |
| Total current liabilities | US$ in thousands | 1,165,280 | 1,743,900 | 1,525,760 | 1,511,630 | 1,404,490 |
| Working capital turnover | 7.80 | 11.99 | 43.04 | 16.77 | 47.14 |
December 31, 2023 calculation
Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $6,905,480K ÷ ($2,050,360K – $1,165,280K)
= 7.80
The working capital turnover ratio for Sonoco Products Co. has shown fluctuations over the past five years. The ratio decreased from 46.05 in 2019 to 16.42 in 2020, indicating a decline in the company's efficiency in utilizing its working capital to generate sales revenue. However, the ratio improved significantly to 42.06 in 2021, reflecting a more efficient use of working capital to generate sales.
In 2022, the working capital turnover ratio further increased to 11.74, indicating a slight improvement in the company's working capital management compared to the previous year. However, there was a notable decline in efficiency in 2023, with the ratio dropping to 7.66.
Overall, the fluctuating trend in Sonoco Products Co.'s working capital turnover ratio suggests varying levels of efficiency in managing working capital to support sales over the past five years. Further analysis of the company's working capital management strategies and operational efficiency may be necessary to understand the reasons behind these fluctuations and identify areas for improvement.
Peer comparison
Dec 31, 2023