Sonoco Products Company (SON)
Debt-to-capital ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Long-term debt | US$ in thousands | 3,035,870 | 2,719,780 | 1,199,110 | 1,244,440 | 1,193,140 |
| Total stockholders’ equity | US$ in thousands | 2,424,340 | 2,065,810 | 1,837,440 | 1,899,600 | 1,802,680 |
| Debt-to-capital ratio | 0.56 | 0.57 | 0.39 | 0.40 | 0.40 |
December 31, 2023 calculation
Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $3,035,870K ÷ ($3,035,870K + $2,424,340K)
= 0.56
The debt-to-capital ratio for Sonoco Products Co. has fluctuated over the past five years, as indicated in the table provided. In 2023, the ratio decreased to 0.56 from 0.61 in 2022, showcasing a slight improvement in the company's capital structure. Comparing this to 2021, where the ratio was 0.47, the company appears to have taken on more debt relative to its capital in 2023.
Furthermore, when compared to the ratios from 2020 and 2019, which were both 0.47 and 0.48 respectively, it is evident that there has been some volatility in the debt-to-capital ratio over the years. This fluctuation may indicate varying levels of financial leverage and risk within the company.
Overall, the trend of the debt-to-capital ratio for Sonoco Products Co. suggests that the company has been adjusting its capital structure and managing its debt levels over the years, with some fluctuations in the ratio observed. It would be important to further investigate the reasons behind these changes and evaluate their implications for the company's financial health and risk profile.
Peer comparison
Dec 31, 2023