Avery Dennison Corp (AVY)
Inventory turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 7,566,200 | 8,055,400 | 7,403,800 | 6,129,100 | 6,704,000 |
| Inventory | US$ in thousands | 920,700 | 1,009,900 | 907,200 | 717,200 | 663,000 |
| Inventory turnover | 8.22 | 7.98 | 8.16 | 8.55 | 10.11 |
December 31, 2023 calculation
Inventory turnover = Cost of revenue ÷ Inventory
= $7,566,200K ÷ $920,700K
= 8.22
Inventory turnover measures how many times a company's inventory is sold and replaced over a specific period. In the case of Avery Dennison Corp, the inventory turnover ratios for the past five years have been relatively stable, ranging from 7.98 to 10.11.
The inventory turnover ratio increased from 2019 to 2020, indicating a higher rate of inventory turnover during that period. However, in the following years, the ratio slightly decreased but remained above 8, reflecting efficient management of inventory levels.
Overall, Avery Dennison Corp has been effectively managing its inventory, with a consistent turnover rate over the years. This indicates that the company has been able to efficiently sell its inventory and replenish it, which is crucial for maintaining liquidity and optimizing operational efficiency.
Peer comparison
Dec 31, 2023