Sonoco Products Company (SON)
Return on assets (ROA)
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 163,949 | 474,959 | 466,437 | -93,552 | 207,463 |
| Total assets | US$ in thousands | 12,507,800 | 7,191,960 | 7,089,910 | 5,085,330 | 5,277,260 |
| ROA | 1.31% | 6.60% | 6.58% | -1.84% | 3.93% |
December 31, 2024 calculation
ROA = Net income ÷ Total assets
= $163,949K ÷ $12,507,800K
= 1.31%
Sonoco Products Company's return on assets (ROA) has shown fluctuations over the past five years. In 2020, the ROA was 3.93%, indicating that the company generated a profit of $0.0393 for every dollar of assets it owned. However, in 2021, the ROA turned negative at -1.84%, suggesting that the company's assets were not efficiently utilized to generate profits, potentially indicating operational challenges.
The following two years, 2022 and 2023, saw an improvement in ROA, with figures of 6.58% and 6.60%, respectively. This signifies that the company effectively generated profits relative to its asset base during these periods. However, in 2024, the ROA declined to 1.31%, which might indicate a decrease in profitability compared to the previous years.
Overall, the fluctuating ROA trend implies that Sonoco Products Company's efficiency in utilizing its assets to generate profits has varied over the period under consideration. Further analysis of the company's financial performance and operational activities may be necessary to determine the underlying reasons for these fluctuations and to assess the company's overall financial health.
Peer comparison
Dec 31, 2024