Avery Dennison Corp (AVY)
Cash conversion cycle
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 44.42 | 45.76 | 44.72 | 42.71 | 36.10 |
| Days of sales outstanding (DSO) | days | 62.63 | 56.02 | 62.31 | 65.33 | 63.35 |
| Number of days of payables | days | 61.61 | 60.69 | 64.03 | 62.58 | 58.04 |
| Cash conversion cycle | days | 45.44 | 41.09 | 43.01 | 45.45 | 41.40 |
December 31, 2023 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 44.42 + 62.63 – 61.61
= 45.44
The cash conversion cycle of Avery Dennison Corp has fluctuated over the past five years. In 2023, the company's cash conversion cycle was 45.44 days, showing an increase from the previous year's 41.09 days. This indicates that it took Avery Dennison Corp longer to convert its resources into cash during the latest fiscal year.
Comparing 2023 to 2021, the cash conversion cycle increased from 43.01 days to 45.44 days, suggesting a slowdown in the company's cash conversion efficiency over this two-year period. However, when looking at a longer time frame, the cash conversion cycle in 2023 was slightly lower than in 2019 when it stood at 41.40 days.
Overall, the trend in Avery Dennison Corp's cash conversion cycle shows some variability, with fluctuations in efficiency in converting assets into cash over the past five years. Further analysis of the company's operational and financial performance may be necessary to understand the factors contributing to these changes in the cash conversion cycle.
Peer comparison
Dec 31, 2023