Avery Dennison Corp (AVY)
Payables 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 |
| Payables | US$ in thousands | 1,277,100 | 1,339,300 | 1,298,800 | 1,050,900 | 1,066,100 |
| Payables turnover | 5.92 | 6.01 | 5.70 | 5.83 | 6.29 |
December 31, 2023 calculation
Payables turnover = Cost of revenue ÷ Payables
= $7,566,200K ÷ $1,277,100K
= 5.92
The payables turnover ratio of Avery Dennison Corp has been relatively stable over the past five years, ranging between 5.70 and 6.29. This indicates that the company is able to efficiently manage its accounts payable by paying off its suppliers in a timely manner. A higher payables turnover ratio suggests that the company is able to quickly convert its payables into cash, which may be a positive sign of strong liquidity and effective working capital management. Conversely, a lower turnover ratio could indicate that the company is taking longer to pay its suppliers, potentially signaling cash flow or liquidity challenges. Overall, the consistency in Avery Dennison's payables turnover ratio reflects a solid and consistent approach to managing its payment obligations to suppliers.
Peer comparison
Dec 31, 2023