Avery Dennison Corp (AVY)
Operating return on assets (Operating ROA)
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Operating income | US$ in thousands | 1,115,400 | 963,800 | 1,083,400 | 1,062,800 | 856,700 |
| Total assets | US$ in thousands | 8,405,100 | 8,209,800 | 7,950,500 | 7,971,600 | 6,098,900 |
| Operating ROA | 13.27% | 11.74% | 13.63% | 13.33% | 14.05% |
December 31, 2024 calculation
Operating ROA = Operating income ÷ Total assets
= $1,115,400K ÷ $8,405,100K
= 13.27%
Avery Dennison Corp's operating return on assets (operating ROA) has experienced fluctuations over the past five years. The operating ROA was 14.05% as of December 31, 2020, showing a strong initial performance. However, this metric decreased to 13.33% by the end of 2021, indicating a slight decrease in profitability.
In 2022, the operating ROA slightly improved to 13.63%, signaling a positive improvement in the company's operational efficiency. By December 31, 2023, the operating ROA declined to 11.74%, which might raise concerns about the company's ability to generate profits from its assets.
Nevertheless, there was a recovery in the operating ROA in 2024, as it increased to 13.27%. This improvement suggests that Avery Dennison Corp may have undertaken measures to enhance its operational performance and profitability.
Overall, the trend in Avery Dennison Corp's operating ROA indicates some variability in profitability over the years, with fluctuations possibly reflecting changes in the company's operational efficiency and asset utilization. Monitoring this ratio in the future will be essential to assess the company's financial health and efficiency in generating returns from its assets.
Peer comparison
Dec 31, 2024