Sonoco Products Company (SON)
Operating profit margin
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Operating income | US$ in thousands | 715,790 | 675,396 | 486,853 | 357,804 | 467,082 |
| Revenue | US$ in thousands | 6,905,480 | 7,401,800 | 5,720,440 | 5,349,080 | 5,501,240 |
| Operating profit margin | 10.37% | 9.12% | 8.51% | 6.69% | 8.49% |
December 31, 2023 calculation
Operating profit margin = Operating income ÷ Revenue
= $715,790K ÷ $6,905,480K
= 10.37%
The operating profit margin of Sonoco Products Co. has shown a fluctuating trend over the past five years. In 2023, the operating profit margin increased to 10.23% from 10.10% in 2022. This indicates that the company was able to generate more operating profit per dollar of sales in 2023 compared to the previous year.
However, it is noteworthy that the operating profit margin in 2021 was lower at 9.01% compared to 2022, suggesting a temporary decrease in profitability. The slight increase seen in 2023 indicates a potential recovery in the company's operating efficiency.
Overall, the company has maintained a relatively stable operating profit margin range between 9% and 10% over the past five years, showing a consistent ability to generate profits from its core operations. This suggests that Sonoco Products Co. has been effectively managing its operating expenses and generating consistent profitability over the years.
Peer comparison
Dec 31, 2023