Avery Dennison Corp (AVY)
Pretax margin
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before tax but after interest (EBT) (ttm) | US$ in thousands | 694,700 | 662,300 | 750,200 | 897,900 | 999,300 | 1,073,700 | 1,024,500 | 990,800 | 988,700 | 999,500 | 973,000 | 820,700 | 733,600 | 643,900 | 626,300 | 712,700 | 246,900 | 169,800 | 157,800 | 109,000 |
| Revenue (ttm) | US$ in thousands | 8,271,700 | 8,194,300 | 8,422,900 | 8,690,500 | 8,955,200 | 9,115,000 | 8,873,800 | 8,633,600 | 8,343,800 | 8,175,900 | 7,834,700 | 7,257,200 | 6,901,200 | 6,678,800 | 6,707,700 | 6,975,400 | 7,012,100 | 7,007,900 | 7,025,200 | 7,103,200 |
| Pretax margin | 8.40% | 8.08% | 8.91% | 10.33% | 11.16% | 11.78% | 11.55% | 11.48% | 11.85% | 12.22% | 12.42% | 11.31% | 10.63% | 9.64% | 9.34% | 10.22% | 3.52% | 2.42% | 2.25% | 1.53% |
December 31, 2023 calculation
Pretax margin = EBT (ttm) ÷ Revenue (ttm)
= $694,700K ÷ $8,271,700K
= 8.40%
The pretax margin of Avery Dennison Corp has shown fluctuations over the past several quarters. The trend indicates a general decline from 11.85% in December 2021 to 8.40% in December 2023. Peaks were observed in the mid to high double digits in mid-2021, followed by a downward trend, reaching a trough of 3.52% in December 2019, before recovering and stabilizing to a range around 10% in 2022.
The pretax margin measures the company's efficiency in managing its operating expenses in relation to its revenue before taxes. A lower pretax margin may indicate higher operating costs relative to revenue, impacting overall profitability. Key factors influencing the pretax margin could include changes in operating expenses, revenue growth, pricing strategies, cost management initiatives, and economic conditions.
In summary, Avery Dennison Corp has experienced fluctuations in its pretax margin over the analyzed period, and investors and analysts may closely monitor future financial performance indicators to assess the company's profitability and operational efficiency.
Peer comparison
Dec 31, 2023