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.