Avery Dennison Corp (AVY)
Profitability ratios
Return on sales
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross profit margin | 27.53% | 26.62% | 26.30% | 26.53% | 26.85% | 27.31% | 27.32% | 27.30% | 27.72% | 28.12% | 28.45% | 28.04% | 27.87% | 27.50% | 27.20% | 27.58% | 27.15% | 26.98% | 26.74% | 26.71% |
| Operating profit margin | 8.06% | 8.05% | 8.27% | 8.92% | 9.38% | 9.87% | 9.89% | 9.84% | 10.43% | 11.14% | 11.37% | 10.91% | 9.92% | 15.68% | 15.37% | 15.54% | 9.11% | 8.92% | 8.60% | 8.47% |
| 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% |
| Net profit margin | 6.08% | 5.89% | 6.72% | 7.83% | 8.45% | 8.96% | 8.56% | 8.44% | 8.87% | 9.16% | 9.39% | 8.70% | 8.06% | 7.89% | 7.77% | 8.38% | 4.33% | 3.40% | 3.46% | 2.75% |
The profitability ratios of Avery Dennison Corp show a mixed performance over the past few quarters. The gross profit margin has remained relatively stable around 27%, indicating that the company has been able to effectively manage its cost of goods sold.
However, the operating profit margin has fluctuated, with a decreasing trend overall from 9.38% in December 2022 to 8.06% in December 2023. This indicates that the company's operating expenses have been relatively high compared to its revenue.
The pretax margin has also shown fluctuation, with a peak of 12.42% in June 2021, but then decreasing to 8.40% in December 2023. This suggests that Avery Dennison Corp has faced challenges in managing its pre-tax profitability over the examined period.
The net profit margin has also varied, with a decline from 8.45% in December 2022 to 6.08% in December 2023. This indicates that the company's bottom line has been under pressure, potentially due to various factors such as rising expenses or declining revenue.
In conclusion, while Avery Dennison Corp has maintained a stable gross profit margin, there are concerning trends in the operating profit margin, pretax margin, and net profit margin. The company may need to focus on cost management and revenue generation strategies to improve overall profitability in the future.
Return on investment
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 8.12% | 8.11% | 8.42% | 9.43% | 10.56% | 11.19% | 10.85% | 10.44% | 10.92% | 11.43% | 13.87% | 12.62% | 11.26% | 18.30% | 18.24% | 17.31% | 11.63% | 11.71% | 11.21% | 11.24% |
| Return on assets (ROA) | 6.13% | 5.94% | 6.85% | 8.27% | 9.52% | 10.16% | 9.39% | 8.95% | 9.28% | 9.40% | 11.45% | 10.06% | 9.14% | 9.21% | 9.22% | 9.34% | 5.53% | 4.46% | 4.51% | 3.65% |
| Return on total capital | 38.24% | 37.51% | 42.29% | 48.40% | 53.31% | 57.55% | 56.94% | 55.08% | 55.02% | 59.21% | 60.84% | 56.14% | 54.12% | 53.66% | 57.82% | 67.14% | 26.80% | 23.08% | 21.44% | 17.52% |
| Return on equity (ROE) | 23.64% | 23.40% | 28.09% | 33.29% | 37.26% | 40.70% | 39.21% | 37.71% | 38.46% | 41.62% | 43.16% | 39.90% | 37.44% | 39.48% | 42.92% | 49.83% | 25.22% | 22.53% | 22.88% | 19.69% |
Avery Dennison Corp's profitability ratios have shown a generally positive trend over the past few quarters.
- Operating Return on Assets (Operating ROA) has ranged from 8.11% to 11.43% over the examined period, indicating that the company generated between 8.11% and 11.43% in operating income for each dollar of assets employed in its operations.
- Return on Assets (ROA) has fluctuated between 5.53% and 11.45%, reflecting the company's ability to generate net income from its assets. ROA reached its peak at 11.45% in one quarter but also dipped to 5.53% in another.
- Return on Total Capital has been notably high, ranging from 21.44% to 67.14%, signaling the company's efficiency in generating returns from both debt and equity investments.
- Return on Equity (ROE) has shown a similar positive trend, fluctuating between 19.69% and 49.83%. ROE measures the company's ability to generate profits from shareholders' investments, with Avery Dennison Corp consistently delivering solid returns to its equity investors.
Overall, Avery Dennison Corp has demonstrated strong profitability ratios, indicating efficient utilization of assets and capital, as well as the company's ability to generate healthy returns for its shareholders.