Sonoco Products Company (SON)
Return on assets (ROA)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 474,959 | 466,437 | -85,477 | 207,463 | 291,785 |
| Total assets | US$ in thousands | 7,191,960 | 7,052,940 | 5,073,240 | 5,277,260 | 5,126,290 |
| ROA | 6.60% | 6.61% | -1.68% | 3.93% | 5.69% |
December 31, 2023 calculation
ROA = Net income ÷ Total assets
= $474,959K ÷ $7,191,960K
= 6.60%
Sonoco Products Co.'s return on assets (ROA) has shown fluctuations over the past five years. In 2023, the ROA was 6.60%, slightly lower than the 6.61% in 2022. Despite this minor decrease, the company still maintained a relatively healthy ROA in 2023.
However, it is worth noting that in 2021, the ROA was negative at -1.68%, indicating that the company experienced challenges in generating profits from its assets during that year. The subsequent improvement in 2022 and 2023 may suggest successful efforts to enhance asset utilization and profitability.
Compared to 2020 and 2019 when the ROA was 3.93% and 5.69% respectively, the recent years have seen better performance in terms of utilizing assets to generate profits. Overall, the trend in Sonoco Products Co.'s ROA indicates some variability but showcases a positive trajectory in recent years.
Peer comparison
Dec 31, 2023