Avery Dennison Corp (AVY)
Operating profit margin
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Operating income | US$ in thousands | 657,900 | 840,900 | 872,600 | 665,600 | 218,200 |
| Revenue | US$ in thousands | 8,245,300 | 8,955,200 | 8,343,800 | 6,901,500 | 6,984,600 |
| Operating profit margin | 7.98% | 9.39% | 10.46% | 9.64% | 3.12% |
December 31, 2023 calculation
Operating profit margin = Operating income ÷ Revenue
= $657,900K ÷ $8,245,300K
= 7.98%
The operating profit margin of Avery Dennison Corp has shown fluctuating trends over the past five years. In 2019, the company had a relatively low operating profit margin of 3.12%, indicating that for every dollar of revenue generated, only 3.12 cents were retained as operating profit.
However, there was a significant improvement in the following years, with the operating profit margin increasing to 9.64% in 2020, 10.46% in 2021, and 9.39% in 2022. These improvements suggest enhanced operational efficiency and cost management, as the company retained a higher percentage of revenue as operating profit during these years.
In 2023, the operating profit margin declined to 7.98%, indicating a slight decrease in profitability compared to the previous year. This decline could be attributed to various factors such as changes in operating expenses, pricing strategies, or macroeconomic conditions affecting the company's operations.
Overall, while the trend in the operating profit margin of Avery Dennison Corp has shown fluctuations over the years, the company has demonstrated the ability to improve profitability and efficiency in its operations, albeit with some variability from year to year.
Peer comparison
Dec 31, 2023