Avery Dennison Corp (AVY)
Working capital 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (ttm) | US$ in thousands | 8,271,700 | 8,194,300 | 8,422,900 | 8,690,500 | 8,955,200 | 9,115,000 | 8,873,800 | 8,633,600 | 8,343,800 | 8,175,900 | 7,834,700 | 7,257,200 | 6,901,200 | 6,678,800 | 6,707,700 | 6,975,400 | 7,012,100 | 7,007,900 | 7,025,200 | 7,103,200 |
| Total current assets | US$ in thousands | 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 | 2,340,600 | 2,333,400 | 2,377,200 | 2,323,700 |
| Total current liabilities | US$ in thousands | 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 | 2,253,800 | 2,267,900 | 2,278,500 | 2,040,500 |
| Working capital turnover | 85.72 | 117.06 | 34.76 | 25.15 | — | 405.11 | — | 50.46 | 44.69 | 48.35 | 11.89 | 12.65 | 14.08 | 11.96 | 16.16 | 19.73 | 80.78 | 106.99 | 71.18 | 25.08 |
December 31, 2023 calculation
Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $8,271,700K ÷ ($2,796,000K – $2,699,500K)
= 85.72
The working capital turnover for Avery Dennison Corp has fluctuated over the past several quarters, indicating varying efficiency in managing its working capital.
The ratio peaked at 405.11 in the third quarter of 2022, suggesting extremely efficient management of working capital during that period. However, this high level was likely an outlier, as it was not sustained in subsequent quarters.
In the latest available data, the working capital turnover for December 2023 stands at 85.72, indicating that the company generated $85.72 in revenue for every dollar of working capital invested. This suggests solid efficiency in utilizing its working capital at the end of 2023.
Overall, Avery Dennison Corp should continue to monitor and manage its working capital effectively to ensure optimal utilization of resources and sustained operational efficiency.
Peer comparison
Dec 31, 2023