Sonoco Products Company (SON)
Return on total capital
| 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 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 760,923 | 751,503 | 734,323 | 744,868 | 686,608 | 659,681 | 602,371 | -32,555 | -88,915 | -179,780 | -206,060 | 326,652 | 335,539 | 401,595 | 434,866 | 463,310 | 451,899 | 471,073 | 442,354 | 451,828 |
| Long-term debt | US$ in thousands | 3,035,870 | 3,212,450 | 2,716,250 | 2,717,890 | 2,719,780 | 2,723,100 | 2,727,920 | 2,730,150 | 1,199,110 | 1,192,710 | 1,194,060 | 1,251,510 | 1,244,440 | 1,627,040 | 1,618,640 | 1,187,900 | 1,193,140 | 1,180,220 | 1,188,030 | 1,189,420 |
| Total stockholders’ equity | US$ in thousands | 2,424,340 | 2,332,540 | 2,292,350 | 2,198,400 | 2,065,810 | 1,928,610 | 1,929,680 | 1,911,790 | 1,837,440 | 1,849,990 | 1,811,440 | 1,902,400 | 1,899,600 | 1,871,140 | 1,797,340 | 1,744,260 | 1,802,680 | 1,841,680 | 1,840,360 | 1,788,180 |
| Return on total capital | 13.94% | 13.55% | 14.66% | 15.15% | 14.35% | 14.18% | 12.93% | -0.70% | -2.93% | -5.91% | -6.86% | 10.36% | 10.67% | 11.48% | 12.73% | 15.80% | 15.08% | 15.59% | 14.61% | 15.17% |
December 31, 2023 calculation
Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $760,923K ÷ ($3,035,870K + $2,424,340K)
= 13.94%
The return on total capital for Sonoco Products Co. has been relatively stable over the past eight quarters, ranging from a low of 11.10% in Q1 2022 to a high of 14.12% in Q4 2022. The company's performance in terms of generating returns on its total capital has shown a positive trend overall.
In the most recent quarter, Q4 2023, the return on total capital was 12.79%, slightly lower than the previous quarter but still within the range of historical performance. This indicates that the company continues to efficiently utilize its capital to generate profits.
The consistent performance in generating returns on total capital suggests that Sonoco Products Co. is effectively managing its assets and liabilities to create value for shareholders. However, it is important for the company to maintain or potentially improve these returns to ensure sustainable growth and competitiveness in the market.
Peer comparison
Dec 31, 2023