Avery Dennison Corp (AVY)
Quick 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 | 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 | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Receivables | US$ in thousands | 1,414,900 | 1,426,200 | 1,415,200 | — | 1,374,400 | — | — | — | 1,424,500 | — | — | — | — | — | — | — | — | — | — | — |
| 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 |
| Quick ratio | 0.62 | 0.61 | 0.64 | 0.15 | 0.56 | 0.05 | 0.07 | 0.05 | 0.62 | 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
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($215,000K
+ $37,800K
+ $1,414,900K)
÷ $2,699,500K
= 0.62
The quick ratio of Avery Dennison Corp has fluctuated over the past few years, ranging from as low as 0.05 to as high as 0.64. The quick ratio measures the company's ability to meet its short-term obligations with its most liquid assets, excluding inventory.
The quick ratio has shown some volatility, with a notable increase in the most recent quarter as compared to the significant decrease in the quarter ending March 31, 2023. A quick ratio below 1 may indicate potential liquidity problems, as it suggests that the company may have difficulty meeting its short-term liabilities if they all came due at once.
It is important to monitor the trend of the quick ratio over time to assess the company's liquidity position and its ability to weather short-term financial challenges. Further analysis and comparison with industry standards would provide additional insights into Avery Dennison Corp's liquidity management.
Peer comparison
Dec 31, 2023