Avery Dennison Corp (AVY)
Working capital turnover
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (ttm) | US$ in thousands | 8,755,700 | 8,680,500 | 8,595,400 | 8,450,600 | 8,364,300 | 8,279,700 | 8,498,500 | 8,755,000 | 9,039,300 | 9,196,600 | 8,951,300 | 8,706,300 | 8,408,300 | 8,216,000 | 7,873,300 | 7,299,800 | 6,971,500 | 6,753,500 | 6,785,800 | 7,053,000 |
| Total current assets | US$ in thousands | 3,078,700 | 3,084,700 | 2,967,800 | 2,886,800 | 2,796,000 | 2,814,300 | 2,851,000 | 2,989,200 | 2,782,000 | 2,961,800 | 2,948,800 | 2,894,300 | 2,734,600 | 2,778,500 | 2,741,600 | 2,632,400 | 2,416,200 | 2,374,500 | 2,324,600 | 2,913,600 |
| Total current liabilities | US$ in thousands | 2,862,600 | 3,349,000 | 3,300,200 | 3,308,200 | 2,699,500 | 2,744,300 | 2,608,700 | 2,643,700 | 2,799,800 | 2,939,300 | 3,000,500 | 2,723,200 | 2,547,900 | 2,609,400 | 2,082,500 | 2,058,500 | 1,926,000 | 1,816,000 | 1,909,500 | 2,560,100 |
| 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 |
December 31, 2024 calculation
Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $8,755,700K ÷ ($3,078,700K – $2,862,600K)
= 40.52
The working capital turnover ratio measures how efficiently a company is utilizing its working capital to generate sales. A higher ratio indicates better efficiency in managing working capital.
Avery Dennison Corp's working capital turnover has shown fluctuations over the past few years, ranging from a low of 11.95 in June 2021 to a high of 408.74 in September 2022. The ratio seems to have spiked significantly in September 2022, possibly indicating a major change in the company's working capital management or sales levels during that period.
The ratio dropped sharply in March 2023 to 25.34, suggesting a decrease in working capital efficiency compared to the previous quarter. However, the ratio recovered in June 2023 to 35.07, showing improved efficiency in managing working capital.
It is important to note the absence of data for some quarters, indicated by "—". This lack of data may limit the ability to track the trend consistently over time and could be indicative of gaps in financial reporting or other factors affecting the calculation of the ratio.
Overall, Avery Dennison Corp's working capital turnover ratio exhibits variability, which may be influenced by changes in the company's operating cycle, sales patterns, or working capital management strategies. Tracking this ratio over time can provide insights into the company's efficiency in utilizing its working capital resources.
Peer comparison
Dec 31, 2024