Sonoco Products Company (SON)

Solvency ratios

	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
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
Debt-to-capital ratio	0.56	0.58	0.54	0.55	0.57	0.59	0.59	0.59	0.39	0.39	0.40	0.40	0.40	0.47	0.47	0.41	0.40	0.39	0.39	0.40
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
Financial leverage ratio	2.97	3.12	3.08	3.21	3.41	3.62	3.62	3.64	2.76	2.66	2.76	2.78	2.78	3.08	3.19	2.87	2.84	2.71	2.69	2.76

The solvency ratios of Sonoco Products Co. provide insight into the company's ability to meet its long-term financial obligations.

The debt-to-assets ratio has been relatively stable around the range of 0.43 to 0.46 over the past eight quarters. This indicates that approximately 43% to 46% of the company's total assets are financed by debt, suggesting a moderate level of financial leverage.

The debt-to-capital ratio has also exhibited consistency, hovering between 0.56 and 0.59 during the same period. This ratio reflects the proportion of the company's total capital that is funded by debt, with values indicating that around 56% to 59% of the capital structure is comprised of debt.

The debt-to-equity ratio has shown a similar trend, with values in the range of 1.27 to 1.66 over the past eight quarters. These figures suggest that the company has been relying more on debt than equity to finance its operations, with the ratio fluctuating but largely staying above the 1.0 threshold.

The financial leverage ratio has displayed a consistent increase over the quarters, from 2.97 in Q4 2022 to 3.64 in Q1 2022. This ratio indicates the extent to which the company is using debt to finance its operations and how this affects the return on equity for shareholders. The rising trend implies that the company's financial leverage has been increasing, which could result in higher financial risk and interest expenses.

Overall, Sonoco Products Co.'s solvency ratios suggest stable but slightly increasing levels of leverage, with a greater reliance on debt to support its operations and capital structure. Investors and stakeholders should keep an eye on these ratios to monitor the company's ability to manage its debt levels effectively and sustain long-term financial health.

Coverage ratios

	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
Interest coverage	5.57	5.70	5.84	6.46	6.75	7.81	8.31	-0.49	-1.39	-2.56	-2.75	4.24	4.47	5.56	6.20	6.88	6.76	7.11	6.81	7.02

The interest coverage ratio for Sonoco Products Co. has been showing a declining trend over the past few quarters. The ratio decreased from 9.32 in Q1 2022 to 5.58 in Q4 2023. This indicates that the company's ability to cover its interest payments with its operating income has weakened.

A higher interest coverage ratio is generally preferable as it suggests that the company is more capable of meeting its debt obligations. The decreasing trend in Sonoco's interest coverage ratio may raise concerns about its financial health and ability to service its debt in the future.

It is important for investors and stakeholders to closely monitor Sonoco's interest coverage ratio and assess the company's overall financial stability and risk management strategies. Further analysis of the company's debt structure and profitability levels may provide additional insights into its ability to handle its interest obligations.