Sonoco Products Company (SON)
Return on equity (ROE)
| 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 stockholders’ equity | US$ in thousands | 2,424,340 | 2,065,810 | 1,837,440 | 1,899,600 | 1,802,680 |
| ROE | 19.59% | 22.58% | -4.65% | 10.92% | 16.19% |
December 31, 2023 calculation
ROE = Net income ÷ Total stockholders’ equity
= $474,959K ÷ $2,424,340K
= 19.59%
Return on equity (ROE) measures a company's profitability by evaluating how efficiently it generates profits from shareholders' equity. Sonoco Products Co.'s ROE has fluctuated over the past five years, ranging from -4.65% in 2021 to 22.58% in 2022. In 2023, Sonoco's ROE stood at 19.59%, reflecting a slight decrease from the prior year. Despite the variability in ROE, the company has generally demonstrated the ability to generate returns for shareholders above the industry average. The negative ROE in 2021 could indicate challenges in profitability or efficiency during that period. Investors may further investigate the reasons behind the fluctuating ROE to assess the company's performance and sustainability in generating returns on equity.
Peer comparison
Dec 31, 2023