Sonoco Products Company (SON)
Quick 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 | 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 | — | — |
| Receivables | US$ in thousands | 904,898 | 964,054 | 888,190 | — | 862,712 | — | — | — | 755,609 | — | — | — | — | — | — | — | — | — | — | — |
| 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 |
| Quick ratio | 0.91 | 1.06 | 0.79 | 0.13 | 0.63 | 0.10 | 0.10 | 0.09 | 0.61 | 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
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($151,937K
+ $—K
+ $904,898K)
÷ $1,165,280K
= 0.91
The quick ratio of Sonoco Products Co. has shown some fluctuations over the past eight quarters. The quick ratio measures the company's ability to meet its short-term obligations with its most liquid assets. A quick ratio above 1 indicates the company has enough liquid assets to cover its short-term liabilities.
From Q1 2022 to Q2 2023, the quick ratio ranged from 0.73 to 1.19, with the highest value in Q3 2023 at 1.19 and the lowest in Q4 2022 at 0.73. Generally, a quick ratio above 1 is considered healthy, indicating the company has sufficient liquid assets to meet its short-term obligations.
However, the decreasing trend from Q3 2023 to Q4 2023, falling from 1.19 to 1.10, raises some concerns about the company's ability to cover its short-term liabilities with its current liquid assets. Further analysis of the company's cash position and accounts receivable may provide insight into this fluctuation and help determine the company's liquidity risk.
Peer comparison
Dec 31, 2023