Sonoco Products Company (SON)

Cash ratio

Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Cash and cash equivalents US$ in thousands 431,010 151,937 227,438 170,978 564,848
Short-term investments US$ in thousands
Total current liabilities US$ in thousands 4,038,290 1,165,280 1,774,600 1,525,760 1,511,630
Cash ratio 0.11 0.13 0.13 0.11 0.37

December 31, 2024 calculation

Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($431,010K + $—K) ÷ $4,038,290K
= 0.11

The cash ratio of Sonoco Products Company has shown a declining trend over the years based on the provided data. As of December 31, 2020, the cash ratio was 0.37, indicating that the company had $0.37 in cash and cash equivalents for every $1 of current liabilities. However, by December 31, 2021, the cash ratio had decreased significantly to 0.11, suggesting a reduction in the company's ability to cover its short-term obligations with cash on hand.

Despite a slight improvement in the cash ratio to 0.13 by December 31, 2022, there was not a substantial change in the company's liquidity position. This level was maintained in the following year, December 31, 2023. However, by December 31, 2024, the cash ratio fell back to 0.11, indicating a potential liquidity challenge for Sonoco Products Company.

Overall, the downward trend in the cash ratio raises concerns about the company's ability to meet its short-term financial obligations using its available cash and near-cash assets. Management may need to closely monitor and assess its liquidity position to ensure the company's financial health and stability in the future.


Peer comparison

Dec 31, 2024