Avery Dennison Corp (AVY)
Current ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Total current assets | US$ in thousands | 3,078,700 | 2,796,000 | 2,782,000 | 2,734,600 | 2,416,200 |
| Total current liabilities | US$ in thousands | 2,862,600 | 2,699,500 | 2,799,800 | 2,547,900 | 1,926,000 |
| Current ratio | 1.08 | 1.04 | 0.99 | 1.07 | 1.25 |
December 31, 2024 calculation
Current ratio = Total current assets ÷ Total current liabilities
= $3,078,700K ÷ $2,862,600K
= 1.08
The current ratio of Avery Dennison Corp has exhibited a varying trend over the past five years. Starting at 1.25 in December 31, 2020, the ratio decreased to 1.07 by December 31, 2021, indicating a slightly weaker liquidity position. However, the ratio further decreased to 0.99 as of December 31, 2022, falling below the ideal threshold of 1. This suggests potential challenges in meeting short-term obligations with current assets alone.
There was a slight improvement in the current ratio to 1.04 by December 31, 2023, which may indicate a better ability to cover short-term liabilities with current assets. Additionally, the ratio increased to 1.08 by December 31, 2024, showing a further improvement in the liquidity position.
Overall, while the current ratio fluctuated over the years, it is important for Avery Dennison Corp to maintain a ratio above 1 to ensure the company can meet its short-term obligations effectively and efficiently.
Peer comparison
Dec 31, 2024