Sonoco Products Company (SON)
Working capital 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 current assets | US$ in thousands | 3,178,560 | 2,050,360 | 2,398,220 | 1,658,680 | 1,830,550 |
| Total current liabilities | US$ in thousands | 4,038,290 | 1,165,280 | 1,774,600 | 1,525,760 | 1,511,630 |
| Working capital turnover | — | 7.66 | 11.63 | 42.06 | 16.42 |
December 31, 2024 calculation
Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $5,305,360K ÷ ($3,178,560K – $4,038,290K)
= —
The working capital turnover ratio of Sonoco Products Company has shown significant fluctuations over the years. In December 2020, the ratio was 16.42, indicating that the company generated $16.42 in net sales for every dollar of working capital invested. This ratio increased sharply to 42.06 by the end of December 2021, suggesting a more efficient utilization of working capital to generate sales.
However, the ratio decreased notably to 11.63 by December 2022 and then further declined to 7.66 by December 2023. These reductions signify a decrease in the efficiency of the company's working capital management in generating sales revenue. The sharp decline in 2023 raises concerns about the company's ability to effectively utilize its working capital resources.
Unfortunately, the working capital turnover ratio for December 2024 is not available. Overall, the fluctuations in the working capital turnover ratio demonstrate varying levels of efficiency in managing working capital to generate sales for Sonoco Products Company. Further analysis of the underlying factors causing these fluctuations would be necessary to assess the company's working capital management effectively.
Peer comparison
Dec 31, 2024