Avery Dennison Corp (AVY)
Activity ratios
Short-term
Turnover ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 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 |
| Receivables turnover | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Payables turnover | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Working capital turnover | 40.52 | — | — | — | 86.68 | 118.28 | 35.07 | 25.34 | — | 408.74 | — | 50.88 | 45.04 | 48.59 | 11.95 | 12.72 | 14.22 | 12.09 | 16.35 | 19.95 |
Avery Dennison Corp's inventory turnover ratio has been relatively stable over the past few years, ranging from 6.08 to 7.42. This indicates that the company is efficiently managing its inventory levels, with an average of around 6.5 to 7 times annual turnover.
The receivables turnover ratio data is not available, which makes it difficult to assess how effectively the company is collecting its receivables from customers. Without this information, it is challenging to gauge the efficiency of Avery Dennison's credit policies and collections process.
Similarly, the payables turnover ratio data is also missing, preventing an analysis of how quickly the company is paying its suppliers. This ratio would provide insight into Avery Dennison's payment practices and relationships with its vendors.
The working capital turnover ratio reveals significant fluctuations, ranging from 11.95 to 408.74. This suggests that Avery Dennison's effectiveness in utilizing its working capital to generate sales has varied widely over the years. The drastic changes in this ratio may indicate shifts in the company's operational efficiency and financial management strategies.
In conclusion, while Avery Dennison Corp seems to maintain a stable inventory turnover, the unavailability of receivables and payables turnover data limits a comprehensive assessment of the company's overall working capital efficiency and operational effectiveness.
Average number of days
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 57.35 | 60.02 | 58.45 | 58.35 | 55.21 | 56.03 | 57.54 | 59.45 | 55.56 | 55.20 | 55.37 | 55.24 | 54.32 | 54.23 | 53.33 | 54.54 | 51.86 | 49.19 | 53.45 | 51.47 |
| Days of sales outstanding (DSO) | days | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Number of days of payables | days | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
Based on the provided data for Avery Dennison Corp, we can analyze the activity ratios as follows:
1. Days of Inventory on Hand (DOH):
- The days of inventory on hand measures how many days, on average, it takes for the company to sell its inventory.
- The DOH for Avery Dennison Corp has shown a slight upward trend from 51.47 days as of March 31, 2020, to 57.35 days as of December 31, 2024.
- A higher DOH could indicate slow-moving inventory or potential issues with inventory management. In contrast, a lower DOH may suggest efficient inventory turnover and better working capital management.
2. Days of Sales Outstanding (DSO):
- Unfortunately, the data provided does not include information on the days of sales outstanding for Avery Dennison Corp.
- DSO measures the average number of days it takes for a company to collect revenue after a sale is made. A lower DSO indicates a faster collection of accounts receivable and better cash flow management.
3. Number of Days of Payables:
- Similarly, data on the number of days of payables for Avery Dennison Corp is not available in the provided information.
- The number of days of payables reflects the average payment period the company takes to pay its suppliers. A longer payable period can indicate better cash flow management, as the company is taking longer to pay its obligations.
In conclusion, while we can analyze the inventory management aspect through the Days of Inventory on Hand (DOH) ratio, the absence of data on the Days of Sales Outstanding (DSO) and Number of Days of Payables limits our ability to fully evaluate Avery Dennison Corp's efficiency in managing its receivables and payables.
Long-term
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Fixed asset turnover | — | — | — | — | — | 5.32 | 5.42 | 5.59 | 5.87 | 6.38 | 6.17 | 5.89 | 5.69 | 5.85 | 5.85 | 5.49 | 5.19 | 5.47 | 5.52 | 5.72 |
| Total asset turnover | 1.04 | 1.03 | 1.04 | 1.02 | 1.02 | 1.02 | 1.03 | 1.06 | 1.14 | 1.14 | 1.11 | 1.07 | 1.05 | 1.03 | 1.23 | 1.16 | 1.14 | 1.18 | 1.20 | 1.13 |
Avery Dennison Corp's fixed asset turnover has shown a fluctuating trend over the past few years, ranging from a low of 5.19 in December 2020 to a high of 6.38 in September 2022. This ratio indicates the company's ability to generate sales from its investment in fixed assets. Overall, the company has maintained a relatively high fixed asset turnover, suggesting efficient utilization of its fixed assets to generate revenue.
In comparison, the total asset turnover of Avery Dennison Corp has also exhibited variability, with values fluctuating between 1.03 in September 2021 and 1.23 in June 2021. This ratio reflects the company's ability to generate sales relative to its total assets. Despite some fluctuations, the total asset turnover has generally remained above 1, indicating that the company is generating sufficient revenue in relation to its total asset base.
Overall, the trends in both fixed asset turnover and total asset turnover ratios for Avery Dennison Corp suggest that the company has been effectively utilizing its assets to generate sales, with variations in performance likely influenced by changing market conditions and operational factors.