Avery Dennison Corp (AVY)
Cash conversion cycle
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 57.35 | 60.02 | 58.45 | 58.35 | 55.21 | 56.03 | 57.54 | 59.45 | 55.56 | 55.20 | 55.37 | 55.24 | 54.32 | 54.23 | 53.33 | 54.54 | 51.86 | 49.19 | 53.45 | 51.47 |
| Days of sales outstanding (DSO) | days | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Number of days of payables | days | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Cash conversion cycle | days | 57.35 | 60.02 | 58.45 | 58.35 | 55.21 | 56.03 | 57.54 | 59.45 | 55.56 | 55.20 | 55.37 | 55.24 | 54.32 | 54.23 | 53.33 | 54.54 | 51.86 | 49.19 | 53.45 | 51.47 |
December 31, 2024 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 57.35 + — – —
= 57.35
The cash conversion cycle measures the time it takes for a company to convert its investment in inventory and other resources into cash flows from sales. For Avery Dennison Corp, the trend in the cash conversion cycle has been relatively stable over the recent quarters.
From March 31, 2020 to December 31, 2024, the cash conversion cycle fluctuated within a range of 49.19 to 60.02 days. The company's cash conversion cycle has seen some fluctuations but has generally trended slightly upwards, with occasional decreases followed by increases in the cycle period.
The average cash conversion cycle for the period is around 54 days, indicating that on average, it takes Avery Dennison approximately 54 days to convert its investments in inventory and accounts receivable into cash flows from sales.
Overall, a stable but slightly increasing trend in the cash conversion cycle suggests that Avery Dennison may be experiencing some challenges in efficiently managing its working capital and converting its assets into cash. It is essential for the company to closely monitor and manage its cash conversion cycle to ensure optimal liquidity and efficiency in its operations.
Peer comparison
Dec 31, 2024