Avery Dennison Corp (AVY)
Working capital turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 8,755,700 | 8,364,300 | 9,039,300 | 8,408,300 | 6,971,500 |
| Total current assets | US$ in thousands | 3,078,700 | 2,796,000 | 2,782,000 | 2,734,600 | 2,416,200 |
| Total current liabilities | US$ in thousands | 2,862,600 | 2,699,500 | 2,799,800 | 2,547,900 | 1,926,000 |
| Working capital turnover | 40.52 | 86.68 | — | 45.04 | 14.22 |
December 31, 2024 calculation
Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $8,755,700K ÷ ($3,078,700K – $2,862,600K)
= 40.52
The working capital turnover ratio for Avery Dennison Corp has shown significant fluctuations over the years. In 2020, the ratio stood at 14.22, indicating that the company generated $14.22 in revenue for every dollar of working capital invested. This ratio saw a remarkable increase to 45.04 in 2021, suggesting a much more efficient utilization of working capital to generate revenue.
The data for 2022 is missing, but in 2023, the working capital turnover ratio surged to 86.68, showcasing a substantial improvement in the efficiency of working capital management. However, in 2024, the ratio dropped to 40.52, although still indicating a relatively efficient use of working capital.
Overall, Avery Dennison Corp has displayed varying levels of efficiency in utilizing its working capital to generate revenue over the years, with notable improvements in 2021 and 2023. The company should continue to monitor and manage its working capital effectively to ensure optimal financial performance and operational efficiency.
Peer comparison
Dec 31, 2024