Avery Dennison Corp (AVY)
Payables 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 |
| Payables | US$ in thousands | 1,277,100 | 1,265,300 | 1,234,800 | 1,236,200 | 1,339,300 | 1,383,100 | 1,410,900 | 1,372,500 | 1,298,800 | 1,268,200 | 1,226,500 | 1,178,000 | 1,050,900 | 932,800 | 956,500 | 1,030,800 | 1,066,100 | 1,041,200 | 1,055,400 | 1,033,700 |
| Payables turnover | 5.65 | 5.64 | 5.92 | 6.06 | 6.01 | 5.90 | 5.62 | 5.62 | 5.70 | 5.65 | 5.58 | 5.40 | 5.83 | 6.41 | 6.31 | 6.06 | 6.29 | 7.36 | 7.02 | 6.95 |
December 31, 2023 calculation
Payables turnover = Cost of revenue (ttm) ÷ Payables
= $7,211,300K ÷ $1,277,100K
= 5.65
The payables turnover ratio for Avery Dennison Corp has shown some fluctuations over the past few quarters. The ratio indicates how efficiently the company is managing its accounts payable by measuring the number of times the company pays off its suppliers in a given period.
The trend of the payables turnover ratio for Avery Dennison Corp has been relatively stable over the past several quarters, ranging between 5.40 and 7.36. A higher payables turnover ratio suggests that the company is paying off its suppliers more frequently, which could indicate efficient working capital management.
However, it is important to note that a very high payables turnover ratio could also indicate that the company may be pressuring suppliers for early payments, which could strain supplier relationships. On the other hand, a low ratio may suggest that the company is taking longer to pay its suppliers, potentially leading to strained supplier relationships or missed opportunities for early payment discounts.
In the latest quarter, the payables turnover ratio was 5.65, which is slightly below the highest ratio of 7.36 observed in the fourth quarter of 2019. This indicates that the company is still effectively managing its accounts payable, but there may be room for improvement in efficiency.
Overall, the payables turnover ratio for Avery Dennison Corp demonstrates a consistent focus on managing its accounts payable efficiently, but the company should continue to monitor this ratio to ensure optimal working capital management without negatively impacting supplier relationships.
Peer comparison
Dec 31, 2023