Sonoco Products Company (SON)
Return on equity (ROE)
| 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 stockholders’ equity | US$ in thousands | 2,271,610 | 2,424,340 | 2,072,800 | 1,849,540 | 1,910,530 |
| ROE | 7.22% | 19.59% | 22.50% | -5.06% | 10.86% |
December 31, 2024 calculation
ROE = Net income ÷ Total stockholders’ equity
= $163,949K ÷ $2,271,610K
= 7.22%
Sonoco Products Company's return on equity (ROE) has shown fluctuations over the past five years. In 2020, the ROE stood at 10.86%, indicating a moderate return generated on shareholders' equity. However, in 2021, the ROE turned negative at -5.06%, suggesting that the company incurred a loss compared to the shareholders' investment.
The following year, in 2022, Sonoco Products Company witnessed a significant increase in ROE, reaching 22.50%, signaling a strong return on equity and improved profitability. This positive trend continued in 2023, with an ROE of 19.59%, reflecting continued growth and efficiency in utilizing shareholders' funds.
Nevertheless, in 2024, there was a decline in the ROE to 7.22%, indicating a decrease in the return generated on equity compared to the previous year. This dip could signify various factors impacting the company's performance, such as increased expenses or lower profitability.
Overall, Sonoco Products Company's ROE performance has been mixed over the past five years, with highlights of strong returns in some years but also instances of decline. Further analysis of the company's financial statements and operations would be necessary to understand the underlying reasons for these fluctuations and to assess the sustainability of their ROE in the future.
Peer comparison
Dec 31, 2024