Avery Dennison Corp (AVY)
Inventory 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cost of revenue (ttm) | US$ in thousands | 7,211,300 | 7,134,200 | 7,316,100 | 7,494,600 | 8,055,400 | 8,154,000 | 7,930,900 | 7,713,300 | 7,403,200 | 7,160,600 | 6,837,800 | 6,363,600 | 6,129,400 | 5,979,400 | 6,031,200 | 6,245,300 | 6,704,000 | 7,665,600 | 7,411,100 | 7,184,800 |
| Inventory | US$ in thousands | 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 | 663,000 | 665,000 | 671,000 | 688,300 |
| Inventory turnover | 7.83 | 7.62 | 7.39 | 7.13 | 7.98 | 8.04 | 8.01 | 8.03 | 8.16 | 8.15 | 8.29 | 8.09 | 8.55 | 9.02 | 8.30 | 8.63 | 10.11 | 11.53 | 11.04 | 10.44 |
December 31, 2023 calculation
Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $7,211,300K ÷ $920,700K
= 7.83
Avery Dennison Corp's inventory turnover has shown a consistent trend over the past five years. The company's inventory turnover ratio has ranged between 7.13 and 11.53, with the highest turnover occurring in December 2019 and the lowest in March 2023. The average inventory turnover ratio for the past five years is approximately 8.91.
The fluctuations in inventory turnover may indicate changes in the company's sales volumes, inventory management practices, or market demand for its products. A higher inventory turnover ratio suggests that the company is effectively managing its inventory levels and selling its products efficiently. On the other hand, a lower inventory turnover ratio may indicate excess inventory or slow-moving products.
Overall, Avery Dennison Corp's inventory turnover ratio reflects a reasonably healthy inventory management strategy, but the company should continue to monitor and adjust its inventory levels to optimize efficiency and profitability.
Peer comparison
Dec 31, 2023
Dec 31, 2023