Sonoco Products Company (SON)
Quick ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 431,010 | 151,937 | 227,438 | 170,978 | 564,848 |
| Short-term investments | US$ in thousands | — | — | — | — | — |
| Receivables | US$ in thousands | — | — | — | — | — |
| Total current liabilities | US$ in thousands | 4,038,290 | 1,165,280 | 1,774,600 | 1,525,760 | 1,511,630 |
| Quick ratio | 0.11 | 0.13 | 0.13 | 0.11 | 0.37 |
December 31, 2024 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($431,010K
+ $—K
+ $—K)
÷ $4,038,290K
= 0.11
The quick ratio measures a company's ability to meet its short-term liabilities with its most liquid assets. Sonoco Products Company's quick ratio has shown a declining trend over the years, decreasing from 0.37 as of December 31, 2020, to 0.11 as of December 31, 2024.
A quick ratio below 1 indicates that the company may have difficulty meeting its short-term obligations using only its most liquid assets. Sonoco Products Company's quick ratio below 1 suggests that its current assets are not sufficiently liquid to cover its current liabilities.
A quick ratio of 0.11 as of December 31, 2024, indicates that for every $1 of current liabilities, Sonoco Products Company has only $0.11 of highly liquid assets available to cover those obligations. This may raise concerns about the company's short-term liquidity and its ability to manage its obligations effectively without having to rely on external financing or asset sales.
Overall, the declining trend in Sonoco Products Company's quick ratio highlights a potential liquidity risk that investors and stakeholders should monitor closely.
Peer comparison
Dec 31, 2024