Sonoco Products Company (SON)
Debt-to-equity 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 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 |
| Debt-to-equity ratio | 1.25 | 1.38 | 1.18 | 1.24 | 1.32 | 1.41 | 1.41 | 1.43 | 0.65 | 0.64 | 0.66 | 0.66 | 0.66 | 0.87 | 0.90 | 0.68 | 0.66 | 0.64 | 0.65 | 0.67 |
December 31, 2023 calculation
Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $3,035,870K ÷ $2,424,340K
= 1.25
The debt-to-equity ratio for Sonoco Products Co. has been fluctuating over the past two years, ranging from 1.27 in Q4 2023 to 1.66 in Q1 2022. A decreasing trend is observed from Q1 2022 to Q4 2023, indicating a more conservative capital structure with a lower reliance on debt financing compared to equity. This trend suggests that the company may be reducing its debt levels or increasing its equity investments.
Overall, the debt-to-equity ratio of Sonoco Products Co. appears to be at a moderate level, reflecting a balance between its debt and equity components. It is essential for the company to closely monitor and manage this ratio to ensure financial stability and optimal capital structure alignment with its business goals and industry standards.
Peer comparison
Dec 31, 2023