Sonoco Products Company (SON)
Profitability ratios
Return on sales
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross profit margin | 21.21% | 21.19% | 21.16% | 20.91% | 21.17% | 20.67% | 20.18% | 20.09% | 19.94% | 19.89% | 19.67% | 19.23% | 19.00% | 19.41% | 19.77% | 20.00% | 19.98% | 19.70% | 19.71% | 19.80% |
| Operating profit margin | 8.06% | 8.99% | 9.47% | 9.48% | 9.92% | 9.68% | 9.71% | 9.97% | 9.73% | 9.74% | 9.60% | 8.91% | 8.71% | 7.22% | 7.00% | 6.58% | 6.83% | 8.17% | 8.72% | 9.02% |
| Pretax margin | 1.01% | 5.62% | 7.07% | 7.52% | 9.07% | 8.90% | 8.51% | 8.54% | 7.88% | 8.03% | 7.95% | -1.79% | -2.88% | -4.64% | -5.30% | 4.62% | 4.88% | 6.29% | 6.93% | 7.36% |
| Net profit margin | 2.60% | 4.38% | 5.57% | 5.86% | 7.00% | 7.20% | 6.89% | 6.93% | 6.43% | 6.19% | 6.47% | -0.71% | -1.53% | -2.94% | -3.50% | 3.77% | 3.96% | 5.11% | 5.23% | 5.61% |
Sonoco Products Company's profitability ratios have shown varying trends over the past few years. The Gross profit margin, which indicates the percentage of revenue remaining after accounting for the cost of goods sold, has generally been stable, with a slight increase from 19.80% on March 31, 2020, to 21.21% on December 31, 2024.
The Operating profit margin, reflecting the company's ability to control operating expenses, fluctuated over the period, showing a decline from 9.02% on March 31, 2020, to 8.06% on December 31, 2024, with some peaks and troughs in between.
The Pretax margin, showing how efficiently the company generates profits before taxes, experienced significant volatility, with negative margins in mid-2021 rebounding to positive levels in subsequent periods.
The Net profit margin, indicating the proportion of revenue that translates into profit after all expenses have been deducted, also displayed fluctuations, with negative margins in mid-2021 followed by a recovery to positive levels, reaching a peak of 7.20% on September 30, 2023, before declining to 2.60% on December 31, 2024.
Overall, Sonoco Products Company's profitability ratios demonstrate a mixed performance, with some improvements in gross and net profit margins but fluctuations in operating and pretax margins, indicating a dynamic financial performance over the analyzed period.
Return on investment
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 4.06% | 6.54% | 8.75% | 8.81% | 9.35% | 9.09% | 9.64% | 10.18% | 9.95% | 9.79% | 8.98% | 7.70% | 9.57% | 8.11% | 7.60% | 6.59% | 6.78% | 7.33% | 7.92% | 9.58% |
| Return on assets (ROA) | 1.31% | 3.19% | 5.14% | 5.44% | 6.60% | 6.75% | 6.84% | 7.07% | 6.58% | 6.23% | 6.06% | -0.61% | -1.68% | -3.29% | -3.80% | 3.77% | 3.93% | 4.58% | 4.75% | 5.96% |
| Return on total capital | 18.01% | 23.79% | 26.64% | 27.13% | 28.71% | 29.97% | 30.13% | 31.90% | 33.15% | 33.46% | 30.69% | -2.16% | -4.04% | -3.54% | -3.76% | 25.51% | 25.81% | 26.22% | 28.27% | 30.17% |
| Return on equity (ROE) | 7.17% | 11.62% | 15.11% | 16.14% | 19.53% | 20.99% | 20.98% | 22.64% | 22.50% | 22.45% | 21.94% | -2.21% | -4.62% | -8.72% | -10.42% | 10.42% | 10.86% | 14.03% | 15.08% | 17.01% |
Sonoco Products Company's profitability ratios demonstrate varying levels of performance over the periods under review.
1. Operating return on assets (Operating ROA) shows a decreasing trend from 9.58% on March 31, 2020, to 4.06% on December 31, 2024, with occasional fluctuations in between. The ratio peaked at 10.18% on March 31, 2023, indicating a relatively strong operational efficiency during that period.
2. Return on assets (ROA) experienced significant volatility, fluctuating from -3.80% on June 30, 2021, to 7.07% on March 31, 2023. The ratio shows a slightly improving trend towards the end of the period, reaching 5.14% on June 30, 2024.
3. Return on total capital witnessed a similar pattern to Operating ROA, starting at 30.17% on March 31, 2020, declining to 18.01% by December 31, 2024. The ratio showed a significant recovery from negative figures in the first half of 2021 to over 30% by June 30, 2022, maintaining relatively stable levels thereafter.
4. Return on equity (ROE) also displayed fluctuations over the periods, ranging from -10.42% on June 30, 2021, to 22.64% on March 31, 2023. The ratio trended downwards in the latter part of the period, falling to 7.17% by December 31, 2024, indicating a decrease in the company's ability to generate returns for its shareholders.
Overall, while Sonoco Products Company exhibited periods of strong profitability metrics, the ratios show a general downward trend in recent years, highlighting potential challenges in maintaining and improving profitability levels.