Avery Dennison Corp (AVY)
Cash ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 215,000 | 167,200 | 162,700 | 252,300 | 253,700 |
| Short-term investments | US$ in thousands | 37,800 | 31,300 | 33,400 | 32,600 | 30,600 |
| Total current liabilities | US$ in thousands | 2,699,500 | 2,799,800 | 2,547,900 | 1,926,000 | 2,253,800 |
| Cash ratio | 0.09 | 0.07 | 0.08 | 0.15 | 0.13 |
December 31, 2023 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($215,000K
+ $37,800K)
÷ $2,699,500K
= 0.09
The cash ratio of Avery Dennison Corp has shown fluctuations over the past five years. The cash ratio measures the company's ability to cover its short-term liabilities with its cash and cash equivalents. A higher cash ratio indicates a stronger ability to meet short-term obligations.
In 2023, the cash ratio increased to 0.09 from 0.07 in 2022, indicating a slight improvement in the company's liquidity position. However, the cash ratio is lower compared to 2020 and 2019, suggesting a potential decrease in the company's ability to meet short-term obligations using its available cash.
The decreasing trend from 2020 to 2023 could indicate that Avery Dennison Corp may be relying more on other sources of liquidity besides cash and cash equivalents to meet its short-term obligations. It is important for investors and stakeholders to monitor this trend to assess the company's liquidity risk and financial health.
Peer comparison
Dec 31, 2023