Avery Dennison Corp (AVY)
Receivables turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 8,245,300 | 8,955,200 | 8,343,800 | 6,901,500 | 6,984,600 |
| Receivables | US$ in thousands | 1,414,900 | 1,374,400 | 1,424,500 | 1,235,200 | 1,212,200 |
| Receivables turnover | 5.83 | 6.52 | 5.86 | 5.59 | 5.76 |
December 31, 2023 calculation
Receivables turnover = Revenue ÷ Receivables
= $8,245,300K ÷ $1,414,900K
= 5.83
The receivables turnover ratio for Avery Dennison Corp has been fluctuating over the past five years, ranging from 5.59 in 2020 to 6.52 in 2022. This ratio indicates how efficiently the company is able to collect payments from its customers. A higher turnover ratio suggests that the company is more efficient in collecting on its accounts receivable.
In general, the trend in the receivables turnover ratio for Avery Dennison Corp has been relatively stable, with some variations from year to year. It indicates that the company has been able to manage its accounts receivable effectively over this period. However, it would be beneficial for the company to maintain a consistent or increasing trend in the receivables turnover ratio, as it signifies better liquidity and cash flow management.
Overall, the receivables turnover analysis suggests that Avery Dennison Corp has been effective in converting its credit sales into cash, although there is room for improvement to ensure continued efficiency in managing its accounts receivable.
Peer comparison
Dec 31, 2023