Sonoco Products Company (SON)
Solvency ratios
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-capital ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-equity ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Financial leverage ratio | 5.47 | 3.65 | 2.94 | 2.97 | 2.96 | 3.11 | 3.07 | 3.20 | 3.42 | 3.60 | 3.62 | 3.62 | 2.75 | 2.65 | 2.74 | 2.76 | 2.76 | 3.07 | 3.17 | 2.86 |
Based on the provided data, Sonoco Products Company has maintained very low levels of debt relative to its assets, capital, and equity over the specified periods. The debt-to-assets ratio, debt-to-capital ratio, and debt-to-equity ratio have all consistently been at 0.00, indicating that the company has not relied heavily on debt financing to fund its operations and investments.
The financial leverage ratio, which reflects the proportion of a company's assets that are financed by debt, shows some fluctuations over time. In recent periods, there was a notable increase in the financial leverage ratio, reaching a peak of 5.47 in December 2024. This suggests that the company may have taken on more debt relative to its assets and equity during that period.
Overall, Sonoco Products Company's solvency ratios demonstrate a strong financial position with low levels of debt and conservative leverage practices. However, the increasing trend in the financial leverage ratio in recent periods may warrant further monitoring to ensure the company's long-term financial stability and sustainability.
Coverage ratios
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Interest coverage | 2.34 | 3.83 | 5.31 | 5.27 | 5.53 | 5.66 | 5.78 | 6.31 | 7.02 | 7.99 | 8.49 | -0.69 | -1.26 | -1.01 | -0.98 | 6.62 | 6.84 | 7.17 | 7.86 | 8.51 |
Sonoco Products Company's interest coverage ratio has shown fluctuations over the specified time period. The interest coverage ratio measures the company's ability to meet its interest payments on debt obligations.
From March 31, 2020, to March 31, 2021, the interest coverage ratio declined steadily from 8.51 to 6.62, indicating a decrease in the company's ability to cover its interest expense with operating income.
The following quarters, until September 30, 2021, the interest coverage ratio turned negative, indicating that the company's operating income was not sufficient to cover its interest expenses during those periods.
From June 30, 2022, to December 31, 2024, the interest coverage ratio started to improve, reaching a peak of 8.49 on June 30, 2022. However, by December 31, 2024, the ratio decreased to 2.34, suggesting a potential strain on the company's ability to cover its interest obligations from operating income.
Overall, the trend in Sonoco Products Company's interest coverage ratio shows some volatility and a decline in recent periods. Investors and creditors may want to monitor this ratio closely as it can indicate the company's financial health and ability to meet debt obligations.