Sonoco Products Company (SON)
Operating return on assets (Operating ROA)
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Operating income (ttm) | US$ in thousands | 715,790 | 707,360 | 726,365 | 735,982 | 675,395 | 653,220 | 597,790 | 535,605 | 486,853 | 399,342 | 379,574 | 348,010 | 357,804 | 422,452 | 454,256 | 480,297 | 467,082 | 479,300 | 442,325 | 444,419 |
| Total assets | US$ in thousands | 7,191,960 | 7,270,000 | 7,048,990 | 7,061,430 | 7,052,940 | 6,975,650 | 6,989,510 | 6,955,990 | 5,073,240 | 4,925,150 | 4,994,040 | 5,280,750 | 5,277,260 | 5,767,230 | 5,738,860 | 5,012,140 | 5,126,290 | 4,986,180 | 4,945,560 | 4,941,500 |
| Operating ROA | 9.95% | 9.73% | 10.30% | 10.42% | 9.58% | 9.36% | 8.55% | 7.70% | 9.60% | 8.11% | 7.60% | 6.59% | 6.78% | 7.33% | 7.92% | 9.58% | 9.11% | 9.61% | 8.94% | 8.99% |
December 31, 2023 calculation
Operating ROA = Operating income (ttm) ÷ Total assets
= $715,790K ÷ $7,191,960K
= 9.95%
Based on the trend of Sonoco Products Co.'s operating return on assets (operating ROA) over the past eight quarters, we observe fluctuations in the metric. The operating ROA has ranged from a low of 7.94% in Q1 2022 to a high of 10.44% in Q1 2023.
The company's operating ROA has generally exhibited an upward trajectory from Q1 2022 to Q1 2023, reflecting an improvement in the company's ability to generate operating profits from its assets. However, there was a slight decrease in Q4 2023 compared to the previous quarter, which may be an area warranting further investigation.
Overall, Sonoco Products Co.'s operating ROA indicates the efficiency of the company's asset utilization in generating operating income, with fluctuations over the quarters potentially influenced by various operational and economic factors. It is essential for stakeholders to monitor this metric consistently to assess the company's performance and profitability.
Peer comparison
Dec 31, 2023