Avery Dennison Corp (AVY)
Cash ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 329,100 | 215,000 | 167,200 | 162,700 | 252,300 |
| Short-term investments | US$ in thousands | — | 35,100 | 31,300 | 33,400 | 32,600 |
| Total current liabilities | US$ in thousands | 2,862,600 | 2,699,500 | 2,799,800 | 2,547,900 | 1,926,000 |
| Cash ratio | 0.11 | 0.09 | 0.07 | 0.08 | 0.15 |
December 31, 2024 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($329,100K
+ $—K)
÷ $2,862,600K
= 0.11
The cash ratio of Avery Dennison Corp has shown a declining trend from 0.15 as of December 31, 2020, to 0.08 as of December 31, 2021, and further decreasing to 0.07 as of December 31, 2022. However, there was a slight improvement as of December 31, 2023, with the ratio rising to 0.09 and a further increase to 0.11 as of December 31, 2024. This indicates that the company's ability to cover its short-term liabilities with its cash and cash equivalents has fluctuated over the years, with a recent improvement in liquidity position. It is essential for Avery Dennison Corp to continually monitor and manage its cash resources to ensure it can meet its immediate financial obligations effectively.
Peer comparison
Dec 31, 2024