Avery Dennison Corp (AVY)
Number of days of payables
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Payables turnover | 5.92 | 6.01 | 5.70 | 5.83 | 6.29 | |
| Number of days of payables | days | 61.61 | 60.69 | 64.03 | 62.58 | 58.04 |
December 31, 2023 calculation
Number of days of payables = 365 ÷ Payables turnover
= 365 ÷ 5.92
= 61.61
Based on the data provided, Avery Dennison Corp's number of days of payables has shown some fluctuation over the past five years. The number of days of payables is a measure of how long, on average, it takes the company to pay its suppliers for goods or services purchased on credit.
In 2023, Avery Dennison Corp took approximately 61.61 days to pay its payables, which is slightly higher compared to the previous year, where it took 60.69 days. This indicates that the company may be taking slightly longer to settle its payables in 2023.
Looking back further, the number of days of payables was 64.03 days in 2021, 62.58 days in 2020, and 58.04 days in 2019. The increase in days of payables from 2019 to 2021 suggests that the company was taking longer to pay its suppliers during those years. However, there was a slight improvement in 2022 and a small increase in 2023.
Overall, the trend in Avery Dennison Corp's number of days of payables indicates some variability but generally hovering around the 60-65 days range. A higher number of days of payables may indicate that the company has more time to pay its suppliers, potentially improving cash flow, but could also signal liquidity issues or strained supplier relationships. It is essential to monitor this ratio over time to understand how efficiently the company manages its payables.
Peer comparison
Dec 31, 2023