Sonoco Products Company (SON)
Net profit margin
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 474,959 | 466,437 | -85,477 | 207,463 | 291,785 |
| Revenue | US$ in thousands | 6,905,480 | 7,401,800 | 5,720,440 | 5,349,080 | 5,501,240 |
| Net profit margin | 6.88% | 6.30% | -1.49% | 3.88% | 5.30% |
December 31, 2023 calculation
Net profit margin = Net income ÷ Revenue
= $474,959K ÷ $6,905,480K
= 6.88%
The net profit margin of Sonoco Products Co. has shown fluctuations over the past five years. In 2023, the net profit margin improved to 7.00%, representing an increase from the previous year's margin of 6.43%. This indicates that the company was able to effectively control its costs and generate higher profits relative to its revenue in 2023.
However, in 2021, Sonoco Products Co. reported a negative net profit margin of -1.53%, implying that the company incurred a net loss for that year. This negative margin may be attributed to various internal and external factors affecting the company's profitability during that period.
In 2020 and 2019, the net profit margins were 3.96% and 5.43% respectively, showing a downward trend in profitability compared to the improved margins in 2023. It is essential for Sonoco Products Co. to consistently monitor and manage its expenses and revenue generation to sustain or enhance its net profit margin over time.
Peer comparison
Dec 31, 2023