Avery Dennison Corp (AVY)
Profitability ratios
Return on sales
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Gross profit margin | 27.62% | 26.85% | 27.72% | 27.87% | 27.26% |
| Operating profit margin | 7.98% | 9.39% | 10.46% | 9.64% | 3.12% |
| Pretax margin | 8.43% | 11.16% | 11.85% | 10.63% | 3.53% |
| Net profit margin | 6.10% | 8.45% | 8.87% | 8.05% | 4.35% |
Avery Dennison Corp's profitability ratios have shown some fluctuations over the past five years. The gross profit margin has been relatively stable, ranging from 26.85% to 27.87%, with a slight increase to 27.62% in 2023. This indicates the company's ability to generate profit after accounting for the cost of goods sold.
The operating profit margin has shown more variability, with a peak of 10.46% in 2021 and a dip to 7.98% in 2023. This ratio reflects the company's efficiency in managing operating expenses to produce operating income.
The pretax margin, which represents profitability before taxes, has also fluctuated over the period, from 3.53% in 2019 to 11.85% in 2021. In 2023, the ratio decreased to 8.43%, which could be a result of changes in operating efficiency or tax expenses.
Lastly, the net profit margin, which indicates the percentage of revenue that translates to profit after all expenses are accounted for, has varied from 4.35% in 2019 to 8.87% in 2021. In 2023, it decreased to 6.10%, which may be attributed to changes in operating efficiency or non-operating expenses.
Overall, Avery Dennison Corp has shown some fluctuations in its profitability ratios over the years, reflecting changes in operational efficiency, cost management, and other factors affecting the company's bottom line.
Return on investment
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 8.01% | 10.58% | 10.95% | 10.94% | 3.98% |
| Return on assets (ROA) | 6.13% | 9.52% | 9.28% | 9.14% | 5.53% |
| Return on total capital | 38.24% | 53.31% | 55.02% | 54.12% | 26.80% |
| Return on equity (ROE) | 23.64% | 37.26% | 38.46% | 37.44% | 25.22% |
Avery Dennison Corp's profitability ratios have shown a mixed trend over the past five years.
Operating return on assets (Operating ROA) has fluctuated between 3.98% in 2019 to 10.95% in 2021, indicating the company's ability to generate operating profits from its assets. However, the metric has slightly declined to 8.01% in 2023.
Return on assets (ROA) reflects the company's overall ability to generate profits from its total assets. Avery Dennison Corp's ROA has ranged from 5.53% in 2019 to 9.52% in 2022, with a noticeable decrease to 6.13% in 2023 likely due to changes in asset utilization or margins.
The return on total capital metric has shown a significant increase from 26.80% in 2019 to 55.02% in 2021, indicating the efficient utilization of both equity and debt to generate returns. However, there was a slight decrease to 38.24% in 2023, possibly due to changes in capital structure or cost of capital.
Return on equity (ROE) has similarly demonstrated fluctuations, ranging from 25.22% in 2019 to 38.46% in 2021. The ROE for 2023 stands at 23.64%, suggesting a decrease in profitability compared to the previous year.
Overall, Avery Dennison Corp's profitability ratios reflect varying performance levels over the years, impacted by factors such as asset management efficiency, revenue generation, and capital structure management. Further analysis would be needed to understand the underlying reasons for these fluctuations and to assess the company's overall financial health.