Avery Dennison Corp (AVY)
Operating return on assets (Operating ROA)
| 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 |
| Total assets | US$ in thousands | 8,209,800 | 7,950,500 | 7,971,600 | 6,083,900 | 5,488,800 |
| Operating ROA | 8.01% | 10.58% | 10.95% | 10.94% | 3.98% |
December 31, 2023 calculation
Operating ROA = Operating income ÷ Total assets
= $657,900K ÷ $8,209,800K
= 8.01%
Avery Dennison Corp's operating return on assets (operating ROA) has exhibited variability over the past five years. In 2023, the operating ROA decreased to 8.01% from 10.58% in 2022. This decline suggests a decrease in the company's ability to generate operating income from its assets in 2023 compared to the previous year.
However, when comparing the 2023 operating ROA to the ratios in 2021 and 2020, it is evident that the 8.01% figure is lower but still relatively close to the levels seen in those years (10.95% and 10.94% respectively). This indicates that the company's operating performance in 2023 was somewhat in line with the performance in 2021 and 2020.
Moreover, Avery Dennison Corp's operating ROA in 2019 was notably lower at 3.98%, highlighting a significant improvement in the company's ability to generate operating income from its assets in the subsequent years. Overall, while the 2023 operating ROA saw a decline from the previous year, the company has generally shown a positive trend in this metric over the past five years.
Peer comparison
Dec 31, 2023