Avery Dennison Corp (AVY)
Cash ratio
| 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 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 215,000 | 209,900 | 217,100 | 351,300 | 167,200 | 128,200 | 164,800 | 147,100 | 162,700 | 207,200 | 344,800 | 328,000 | 252,300 | 284,700 | 262,600 | 742,000 | 253,700 | 224,200 | 247,300 | 225,700 |
| Short-term investments | US$ in thousands | 37,800 | 35,900 | 36,300 | 36,300 | 31,300 | 29,800 | 31,200 | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Total current liabilities | US$ in thousands | 2,699,500 | 2,744,300 | 2,608,700 | 2,643,700 | 2,799,800 | 2,939,300 | 3,000,500 | 2,723,200 | 2,547,900 | 2,609,400 | 2,082,500 | 2,058,500 | 1,926,000 | 1,816,000 | 1,909,500 | 2,560,100 | 2,253,800 | 2,267,900 | 2,278,500 | 2,040,500 |
| Cash ratio | 0.09 | 0.09 | 0.10 | 0.15 | 0.07 | 0.05 | 0.07 | 0.05 | 0.06 | 0.08 | 0.17 | 0.16 | 0.13 | 0.16 | 0.14 | 0.29 | 0.11 | 0.10 | 0.11 | 0.11 |
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 displayed fluctuations over the past two years. The cash ratio, representing the proportion of company's cash and cash equivalents to its current liabilities, was relatively low in the recent quarters at 0.09 in Dec 31, 2023, and Sep 30, 2023. This indicates that the company may have a lower level of liquidity to cover its short-term obligations during those periods.
However, the cash ratio showed an improvement in the previous quarters, notably reaching 0.29 in Mar 31, 2020, which suggests a strong ability to cover its current liabilities with cash and cash equivalents at that time. The cash ratio then fluctuated over the subsequent quarters but generally remained above 0.10 until Dec 31, 2021.
It is important to monitor the cash ratio trend over time to assess the company's liquidity position and ability to meet its short-term obligations. A decreasing trend in the cash ratio could indicate potential liquidity challenges, while an increasing trend may signify improved financial health and better ability to cover short-term liabilities.
Peer comparison
Dec 31, 2023