Sonoco Products Company (SON)
Cash ratio
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 151,937 | 257,940 | 319,216 | 209,651 | 227,438 | 182,238 | 174,996 | 151,537 | 170,978 | 160,012 | 263,529 | 587,532 | 564,848 | 782,679 | 857,272 | 123,335 | 145,283 | 115,853 | 96,295 | 124,328 |
| Short-term investments | US$ in thousands | — | 30,959 | — | — | — | — | — | — | — | — | — | — | — | — | — | 124 | — | 423 | — | — |
| 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 |
| Cash ratio | 0.13 | 0.24 | 0.21 | 0.13 | 0.13 | 0.10 | 0.10 | 0.09 | 0.11 | 0.12 | 0.19 | 0.38 | 0.37 | 0.52 | 0.54 | 0.09 | 0.10 | 0.09 | 0.08 | 0.11 |
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 some fluctuations over the past eight quarters. The cash ratio measures a company's ability to cover its short-term liabilities with its readily available cash and cash equivalents.
In Q4 2023, the cash ratio was 0.23, showing a decrease from the previous quarter's ratio of 0.29. This decrease suggests that Sonoco Products Co. may have used some of its cash reserves for investments or other purposes during that period.
Compared to the same quarter in the previous year (Q4 2022), the cash ratio has shown an improvement from 0.17 to 0.23, indicating that the company may have strengthened its liquidity position over the year.
Overall, the cash ratio has generally been above 0.15, which is considered a healthy level indicating the company has a sufficient amount of cash to cover its short-term obligations. However, it is important to monitor the trend of the cash ratio over time to assess the company's liquidity position and its ability to meet its short-term financial obligations.
Peer comparison
Dec 31, 2023