Avery Dennison Corp (AVY)
Inventory turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 6,225,000 | 6,086,800 | 6,635,100 | 6,095,500 | 5,048,200 |
| Inventory | US$ in thousands | 978,100 | 920,700 | 1,009,900 | 907,200 | 717,200 |
| Inventory turnover | 6.36 | 6.61 | 6.57 | 6.72 | 7.04 |
December 31, 2024 calculation
Inventory turnover = Cost of revenue ÷ Inventory
= $6,225,000K ÷ $978,100K
= 6.36
The inventory turnover for Avery Dennison Corp has shown a slight decline in recent years, from 7.04 in December 31, 2020 to 6.36 in December 31, 2024. Despite the decrease, the company continues to efficiently manage its inventory, with turnover rates consistently above 6 times annually. This suggests that Avery Dennison is effectively selling and replenishing its inventory, optimizing its working capital utilization. However, the decreasing trend in inventory turnover could indicate potential challenges in managing inventory levels or slower sales growth relative to inventory accumulation. Monitoring inventory turnover ratios over time can provide valuable insights into the company's operational efficiency and inventory management strategies.
Peer comparison
Dec 31, 2024