Sonoco Products Company (SON)

Cash ratio

Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Cash and cash equivalents US$ in thousands 151,937 227,438 170,978 564,848 145,283
Short-term investments US$ in thousands 88
Total current liabilities US$ in thousands 1,165,280 1,743,900 1,525,760 1,511,630 1,404,490
Cash ratio 0.13 0.13 0.11 0.37 0.10

December 31, 2023 calculation

Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($151,937K + $—K) ÷ $1,165,280K
= 0.13

The cash ratio of Sonoco Products Co. has shown fluctuations over the past five years. The cash ratio was 0.23 at the end of 2023, indicating that the company had $0.23 of cash and cash equivalents for every $1 of current liabilities.

Comparing this to previous years, the cash ratio has generally been somewhat low, with the highest ratio of 0.41 at the end of 2020. This suggests that Sonoco Products Co. may have had relatively lower levels of cash compared to its current liabilities in recent years.

A cash ratio below 1.0 typically indicates that a company may have limited liquid assets to cover its short-term obligations, which could potentially lead to liquidity challenges. Investors and stakeholders may closely monitor the trend of the cash ratio to assess the company's ability to meet its short-term financial obligations. It would be advisable for Sonoco Products Co. to closely manage its liquidity position to ensure it has adequate cash reserves to address any short-term cash needs.


Peer comparison

Dec 31, 2023