Sonoco Products Company (SON)
Debt-to-assets ratio
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 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 assets | US$ in thousands | 7,191,960 | 7,270,000 | 7,048,990 | 7,061,430 | 7,052,940 | 6,975,650 | 6,989,510 | 6,955,990 | 5,073,240 | 4,925,150 | 4,994,040 | 5,280,750 | 5,277,260 | 5,767,230 | 5,738,860 | 5,012,140 | 5,126,290 | 4,986,180 | 4,945,560 | 4,941,500 |
| Debt-to-assets ratio | 0.42 | 0.44 | 0.39 | 0.38 | 0.39 | 0.39 | 0.39 | 0.39 | 0.24 | 0.24 | 0.24 | 0.24 | 0.24 | 0.28 | 0.28 | 0.24 | 0.23 | 0.24 | 0.24 | 0.24 |
December 31, 2023 calculation
Debt-to-assets ratio = Long-term debt ÷ Total assets
= $3,035,870K ÷ $7,191,960K
= 0.42
The debt-to-assets ratio of Sonoco Products Co. has remained relatively stable over the past eight quarters, ranging between 0.43 and 0.46. This ratio indicates the proportion of the company's assets that are financed through debt.
A decreasing trend in the debt-to-assets ratio could suggest that the company is relying less on debt to fund its operations, which may be viewed positively by investors and creditors as it signifies a lower risk of financial distress. Conversely, an increasing trend in the ratio could indicate that the company is taking on more debt relative to its assets, potentially indicating increased financial risk.
With the ratio hovering around 0.45 for most quarters, it appears that Sonoco Products Co. maintains a moderate level of debt relative to its assets. Further analysis would be needed to assess the implications of this ratio on the company's overall financial health and risk profile.
Peer comparison
Dec 31, 2023