Sonoco Products Company (SON)
Debt-to-capital ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Long-term debt | US$ in thousands | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 2,271,610 | 2,424,340 | 2,072,800 | 1,849,540 | 1,910,530 |
| Debt-to-capital ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
December 31, 2024 calculation
Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $—K ÷ ($—K + $2,271,610K)
= 0.00
The debt-to-capital ratio of Sonoco Products Company has consistently remained at 0.00 from December 31, 2020, to December 31, 2024. This indicates that the company has not utilized debt significantly to finance its operations and investments relative to its capital structure. A low or zero debt-to-capital ratio suggests that the company may be relying more on equity financing, which could be perceived positively by investors and creditors as it signifies lower financial risk and potentially stronger financial stability. However, it is essential to consider the overall financial strategy and objectives of the company in evaluating the significance of this ratio in the context of its operations and industry dynamics.
Peer comparison
Dec 31, 2024