Avery Dennison Corp (AVY)
Fixed asset turnover
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (ttm) | US$ in thousands | 8,271,700 | 8,194,300 | 8,422,900 | 8,690,500 | 8,955,200 | 9,115,000 | 8,873,800 | 8,633,600 | 8,343,800 | 8,175,900 | 7,834,700 | 7,257,200 | 6,901,200 | 6,678,800 | 6,707,700 | 6,975,400 | 7,012,100 | 7,007,900 | 7,025,200 | 7,103,200 |
| Property, plant and equipment | US$ in thousands | 1,596,200 | 1,555,200 | 1,567,000 | 1,565,600 | 1,540,200 | 1,442,600 | 1,451,000 | 1,477,500 | 1,477,700 | 1,405,500 | 1,344,800 | 1,329,000 | 1,343,700 | 1,233,900 | 1,228,800 | 1,232,000 | 1,210,700 | 1,142,100 | 1,143,800 | 1,144,900 |
| Fixed asset turnover | 5.18 | 5.27 | 5.38 | 5.55 | 5.81 | 6.32 | 6.12 | 5.84 | 5.65 | 5.82 | 5.83 | 5.46 | 5.14 | 5.41 | 5.46 | 5.66 | 5.79 | 6.14 | 6.14 | 6.20 |
December 31, 2023 calculation
Fixed asset turnover = Revenue (ttm) ÷ Property, plant and equipment
= $8,271,700K ÷ $1,596,200K
= 5.18
The fixed asset turnover ratio measures how efficiently a company is generating revenues from its investments in fixed assets, such as property, plant, and equipment. For Avery Dennison Corp, the fixed asset turnover ratio has fluctuated over the past five years, ranging from 5.14 to 6.32.
A declining trend in the fixed asset turnover ratio typically indicates that the company is not effectively utilizing its fixed assets to generate sales. Conversely, an increasing trend suggests improved efficiency in generating revenue from its fixed assets.
In the most recent quarter, the fixed asset turnover ratio stood at 5.18, indicating that the company generated $5.18 in revenue for every dollar invested in fixed assets. This suggests that Avery Dennison Corp has maintained relatively stable efficiency in utilizing its fixed assets to generate sales.
Overall, it is important for the company to monitor its fixed asset turnover ratio over time and compare it to industry benchmarks to ensure optimal asset utilization and efficiency in revenue generation.
Peer comparison
Dec 31, 2023