Avery Dennison Corp (AVY)
Current 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Total current assets | US$ in thousands | 2,796,000 | 2,814,300 | 2,851,000 | 2,989,200 | 2,782,000 | 2,961,800 | 2,948,800 | 2,894,300 | 2,734,600 | 2,778,500 | 2,741,600 | 2,632,400 | 2,416,200 | 2,374,500 | 2,324,600 | 2,913,600 | 2,340,600 | 2,333,400 | 2,377,200 | 2,323,700 |
| 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 |
| Current ratio | 1.04 | 1.03 | 1.09 | 1.13 | 0.99 | 1.01 | 0.98 | 1.06 | 1.07 | 1.06 | 1.32 | 1.28 | 1.25 | 1.31 | 1.22 | 1.14 | 1.04 | 1.03 | 1.04 | 1.14 |
December 31, 2023 calculation
Current ratio = Total current assets ÷ Total current liabilities
= $2,796,000K ÷ $2,699,500K
= 1.04
The current ratio of Avery Dennison Corp has fluctuated over the past few years, ranging between 0.98 and 1.32. A current ratio below 1 indicates that the company may have difficulties meeting its short-term obligations with its current assets alone. However, the company has generally maintained a current ratio above 1, suggesting a sufficient level of liquidity to cover short-term liabilities.
The current ratio was particularly strong in the second and third quarters of 2021, reaching 1.32 and 1.28 respectively, indicating a healthy liquidity position during that period. However, the ratio decreased in subsequent quarters but remained above 1, except for a dip below 1 in the last quarter of 2020.
Overall, Avery Dennison Corp's current ratio indicates the company's ability to meet its short-term obligations and suggests a reasonable level of liquidity in relation to its current liabilities. It is important to continue monitoring the trend of the current ratio to ensure the company's financial health and ability to fulfill its obligations.
Peer comparison
Dec 31, 2023