Avery Dennison Corp (AVY)
Cash conversion cycle
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 57.35 | 55.21 | 55.56 | 54.32 | 51.86 |
| Days of sales outstanding (DSO) | days | — | — | — | — | — |
| Number of days of payables | days | — | — | — | — | — |
| Cash conversion cycle | days | 57.35 | 55.21 | 55.56 | 54.32 | 51.86 |
December 31, 2024 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 57.35 + — – —
= 57.35
The cash conversion cycle for Avery Dennison Corp has shown a slight increase over the years from 51.86 days as of December 31, 2020, to 57.35 days as of December 31, 2024. This indicates that the company is taking longer to convert its investments in inventory into cash receipts from sales. A higher cash conversion cycle may suggest inefficiencies in managing inventory, collecting receivables, or paying payables, which could potentially affect the company's liquidity and working capital management. It would be advisable for Avery Dennison Corp to closely monitor and evaluate its operational processes to optimize its cash conversion cycle for better financial performance.
Peer comparison
Dec 31, 2024