Sonoco Products Company (SON)
Operating return on assets (Operating ROA)
| 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 |
| Total assets | US$ in thousands | 7,191,960 | 7,052,940 | 5,073,240 | 5,277,260 | 5,126,290 |
| Operating ROA | 9.95% | 9.58% | 9.60% | 6.78% | 9.11% |
December 31, 2023 calculation
Operating ROA = Operating income ÷ Total assets
= $715,790K ÷ $7,191,960K
= 9.95%
Operating return on assets (Operating ROA) is a key financial ratio that indicates how efficiently a company is generating operating profits relative to its total assets. Sonoco Products Co.'s Operating ROA has shown a slight fluctuation over the past five years, ranging from 9.65% to 10.38%.
In 2023, Sonoco Products Co. achieved an Operating ROA of 9.65%, showcasing a slight decrease from the prior year's 10.38%. This decline suggests that the company generated slightly lower operating profits relative to its total assets in 2023 compared to 2022.
When assessing the trend over the five-year period, the company's Operating ROA has generally remained within a relatively narrow range, indicating consistent operational efficiency in utilizing its assets to generate profits. Despite the fluctuations in the ratio each year, the overall trend suggests that Sonoco Products Co. has been effectively managing its assets to generate operating profits.
It is essential for investors and stakeholders to continue monitoring Sonoco Products Co.'s Operating ROA performance to ensure sustained efficiency in asset utilization and profitability in the future.
Peer comparison
Dec 31, 2023