Sonoco Products Company (SON)
Working capital 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 |
| Total current assets | US$ in thousands | 2,050,360 | 2,239,890 | 2,359,880 | 2,362,330 | 2,361,250 | 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 | 1,521,200 | 1,564,020 | 1,579,020 | 1,568,490 |
| Total current liabilities | US$ in thousands | 1,165,280 | 1,185,200 | 1,519,580 | 1,609,490 | 1,743,900 | 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 | 1,404,490 | 1,307,460 | 1,274,890 | 1,156,230 |
| Working capital turnover | 7.71 | 6.61 | 8.52 | 9.80 | 11.99 | 10.89 | 10.59 | 11.46 | 43.03 | 22.35 | 22.77 | 12.83 | 16.77 | 6.75 | 8.06 | 36.38 | 47.15 | 21.68 | 18.33 | 13.58 |
December 31, 2023 calculation
Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $6,825,810K ÷ ($2,050,360K – $1,165,280K)
= 7.71
The working capital turnover ratio for Sonoco Products Co. has exhibited some fluctuations over the past eight quarters. In Q4 2023, the working capital turnover was 7.66, indicating that the company generated $7.66 in revenue for every dollar of working capital invested. This was a decrease from the previous quarter's ratio of 6.47.
Despite the decline in Q4 2023, the working capital turnover ratio has generally been relatively high, with a peak of 11.74 in Q4 2022. This suggests that Sonoco Products Co. has been effectively utilizing its working capital to generate sales revenue.
The overall trend shows some variability, with occasional peaks and troughs, but the ratios have generally been above 6. This indicates that the company has been efficient in managing its working capital to support its operations and drive revenue growth. Further analysis of the company's operating efficiency and financial performance may provide additional insights into the factors influencing these fluctuations in the working capital turnover ratio.
Peer comparison
Dec 31, 2023