Avery Dennison Corp (AVY)
Quick ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cash | 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 |
| Receivables | US$ in thousands | — | — | — | — | — |
| Total current liabilities | US$ in thousands | 2,862,600 | 2,699,500 | 2,799,800 | 2,547,900 | 1,926,000 |
| Quick ratio | 0.11 | 0.09 | 0.07 | 0.08 | 0.15 |
December 31, 2024 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($329,100K
+ $—K
+ $—K)
÷ $2,862,600K
= 0.11
The quick ratio of Avery Dennison Corp has shown a declining trend over the past five years. Starting at a relatively low level of 0.15 in December 31, 2020, the ratio decreased to 0.08 by December 31, 2021, further dropping to 0.07 by December 31, 2022. However, there was a slight improvement to 0.09 by December 31, 2023, and a further increase to 0.11 by December 31, 2024.
A quick ratio below 1 indicates that the company may have difficulty meeting its short-term obligations with its most liquid assets. The declining trend of the quick ratio suggests potential liquidity challenges for Avery Dennison Corp, as the company may be relying more on its current assets such as cash and accounts receivable to meet its short-term liabilities.
It is important for investors and stakeholders to monitor this trend closely, as a low quick ratio may indicate inefficiencies in managing working capital or potential cash flow issues that could impact the company's financial health and ability to meet its obligations in a timely manner.
Peer comparison
Dec 31, 2024