Avery Dennison Corp (AVY)
Inventory turnover
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cost of revenue (ttm) | US$ in thousands | 6,225,000 | 6,163,000 | 6,118,700 | 6,083,200 | 6,086,800 | 6,098,000 | 6,283,400 | 6,449,800 | 6,635,100 | 6,707,500 | 6,527,000 | 6,349,200 | 6,095,500 | 5,917,200 | 5,644,700 | 5,264,600 | 5,048,200 | 4,916,600 | 4,961,400 | 5,129,200 |
| Inventory | US$ in thousands | 978,100 | 1,013,500 | 979,900 | 972,500 | 920,700 | 936,100 | 990,500 | 1,050,600 | 1,009,900 | 1,014,400 | 990,100 | 960,900 | 907,200 | 879,100 | 824,800 | 786,700 | 717,200 | 662,600 | 726,600 | 723,300 |
| Inventory turnover | 6.36 | 6.08 | 6.24 | 6.26 | 6.61 | 6.51 | 6.34 | 6.14 | 6.57 | 6.61 | 6.59 | 6.61 | 6.72 | 6.73 | 6.84 | 6.69 | 7.04 | 7.42 | 6.83 | 7.09 |
December 31, 2024 calculation
Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $6,225,000K ÷ $978,100K
= 6.36
Inventory turnover is a key financial ratio that measures how efficiently a company is managing its inventory. It is calculated by dividing the cost of goods sold by the average inventory for a specific period.
For Avery Dennison Corp, the inventory turnover has been relatively stable over the past few years, ranging from 6.08 to 7.42. A higher inventory turnover indicates that the company is selling its inventory more quickly, which can be a positive sign of strong sales and efficient inventory management.
From the data provided, we can see that the inventory turnover has shown a slight fluctuation but has generally maintained a consistent range between 6 and 7 times per year. This suggests that Avery Dennison Corp has been effectively managing its inventory levels and is able to sell its products within a reasonable timeframe.
It is important for companies to strike a balance with inventory turnover - too high of a turnover may indicate stockouts or lost sales opportunities, while too low of a turnover may suggest excess inventory and potential obsolescence.Overall, the inventory turnover ratio for Avery Dennison Corp appears to reflect a healthy balance between inventory management and sales efficiency.
Peer comparison
Dec 31, 2024
Dec 31, 2024