Sonoco Products Company (SON)
Cash conversion cycle
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 89.03 | 52.87 | 69.23 | 45.31 | 39.25 |
| Days of sales outstanding (DSO) | days | — | — | — | — | — |
| Number of days of payables | days | — | — | — | — | — |
| Cash conversion cycle | days | 89.03 | 52.87 | 69.23 | 45.31 | 39.25 |
December 31, 2024 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 89.03 + — – —
= 89.03
The cash conversion cycle of Sonoco Products Company has shown fluctuations over the past five years. Starting at 39.25 days on December 31, 2020, it increased to 45.31 days by December 31, 2021. Subsequently, there was a significant jump to 69.23 days by December 31, 2022, indicating a potential delay in converting inventory to cash. However, by December 31, 2023, the cash conversion cycle decreased to 52.87 days, showing some improvement. The cycle then increased again to 89.03 days by December 31, 2024, suggesting a prolonged time to convert inventory to cash or collect receivables during that period. Overall, understanding these fluctuations in the cash conversion cycle can provide insights into Sonoco's efficiency in managing its working capital and liquidity.
Peer comparison
Dec 31, 2024