Sonoco Products Company (SON)
Current ratio
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Total current assets | US$ in thousands | 3,178,560 | 3,969,030 | 2,114,460 | 2,064,600 | 2,050,360 | 2,239,890 | 2,359,880 | 2,362,330 | 2,398,220 | 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 |
| Total current liabilities | US$ in thousands | 4,038,290 | 1,678,280 | 1,626,130 | 1,577,310 | 1,165,280 | 1,185,200 | 1,519,580 | 1,609,490 | 1,774,600 | 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 |
| Current ratio | 0.79 | 2.36 | 1.30 | 1.31 | 1.76 | 1.89 | 1.55 | 1.47 | 1.35 | 1.37 | 1.36 | 1.31 | 1.09 | 1.19 | 1.17 | 1.27 | 1.21 | 1.52 | 1.42 | 1.11 |
December 31, 2024 calculation
Current ratio = Total current assets ÷ Total current liabilities
= $3,178,560K ÷ $4,038,290K
= 0.79
The current ratio of Sonoco Products Company has fluctuated over the past few years, ranging from as low as 0.79 to as high as 2.36. A current ratio below 1 indicates that the company may have difficulties meeting its short-term obligations with its current assets alone. Conversely, a ratio above 1 suggests the company has more than enough current assets to cover its short-term liabilities.
The trend analysis reveals some inconsistency in the company's liquidity position. For example, the ratio experienced a significant decline from 1.42 in June 2020 to 1.09 in December 2021, indicating potential difficulties in meeting short-term obligations during that period. However, there was a notable improvement in liquidity, with the ratio increasing to 1.89 by September 2023, indicating a strengthened ability to cover short-term liabilities.
It is crucial for Sonoco Products Company to maintain a healthy current ratio above 1 to ensure its ability to meet short-term obligations. The significant fluctuations in the ratio highlight the importance of closely monitoring the company's liquidity position and implementing appropriate measures to manage working capital efficiently.
Peer comparison
Dec 31, 2024