Sonoco Products Company (SON)
Working capital turnover
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (ttm) | US$ in thousands | 6,299,940 | 6,572,460 | 6,607,010 | 6,689,050 | 6,781,290 | 6,821,510 | 7,001,310 | 7,208,510 | 7,249,710 | 7,012,880 | 6,537,850 | 6,008,110 | 5,590,430 | 5,527,590 | 5,424,710 | 5,287,440 | 5,237,440 | 5,169,940 | 5,211,560 | 5,325,800 |
| Total current assets | US$ in thousands | 3,178,560 | 3,969,030 | 2,114,460 | 2,064,600 | 2,050,360 | 2,239,890 | 2,359,880 | 2,362,330 | 2,398,220 | 2,411,320 | 2,376,480 | 2,250,640 | 1,658,680 | 1,600,660 | 1,646,840 | 1,950,740 | 1,830,550 | 2,283,430 | 2,238,660 | 1,513,830 |
| Total current liabilities | US$ in thousands | 4,038,290 | 1,678,280 | 1,626,130 | 1,577,310 | 1,165,280 | 1,185,200 | 1,519,580 | 1,609,490 | 1,774,600 | 1,755,470 | 1,745,140 | 1,715,000 | 1,525,760 | 1,349,240 | 1,404,910 | 1,530,670 | 1,511,630 | 1,499,040 | 1,576,270 | 1,363,800 |
| Working capital turnover | — | 2.87 | 13.53 | 13.73 | 7.66 | 6.47 | 8.33 | 9.58 | 11.63 | 10.69 | 10.36 | 11.22 | 42.06 | 21.99 | 22.42 | 12.59 | 16.42 | 6.59 | 7.87 | 35.50 |
December 31, 2024 calculation
Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $6,299,940K ÷ ($3,178,560K – $4,038,290K)
= —
Based on the data provided, the working capital turnover of Sonoco Products Company has fluctuated over the past few years. The working capital turnover ratio indicates how efficiently a company is utilizing its working capital to generate sales revenue. A higher turnover ratio is generally desirable as it suggests efficient management of working capital.
From March 31, 2020, to December 31, 2021, Sonoco Products Company experienced a significant increase in working capital turnover, peaking at 42.06 on December 31, 2021. This suggests that the company was able to generate sales revenue more efficiently relative to its working capital during this period.
However, in the following quarters, the working capital turnover ratio started to decline, showing a downward trend from March 31, 2022, to September 30, 2024. The ratio ranged from 2.87 to 13.73 during this period, indicating fluctuations in the company's ability to efficiently utilize its working capital to generate sales revenue.
The working capital turnover ratio dropping to 2.87 on September 30, 2024, could indicate potential inefficiencies in managing working capital during that quarter. It is important for the company to closely monitor and analyze the factors contributing to these fluctuations to ensure optimal utilization of working capital for driving sales growth and profitability in the future.
Peer comparison
Dec 31, 2024