Avery Dennison Corp (AVY)
Return on assets (ROA)
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 704,900 | 503,000 | 757,100 | 740,100 | 555,900 |
| Total assets | US$ in thousands | 8,405,100 | 8,209,800 | 7,950,500 | 7,971,600 | 6,098,900 |
| ROA | 8.39% | 6.13% | 9.52% | 9.28% | 9.11% |
December 31, 2024 calculation
ROA = Net income ÷ Total assets
= $704,900K ÷ $8,405,100K
= 8.39%
The return on assets (ROA) for Avery Dennison Corp has shown a generally positive trend over the past five years. Starting at 9.11% on December 31, 2020, the ROA increased steadily to reach 9.52% by December 31, 2022, indicating improved efficiency in generating profit relative to its total assets.
However, there was a noticeable decline in ROA to 6.13% by December 31, 2023, suggesting a potential dip in profitability in that fiscal year. It is important for investors and analysts to further investigate the reasons behind this decrease to understand the underlying factors impacting the company's performance during that period.
The ROA rebounded to 8.39% by December 31, 2024, showing signs of recovery in profitability. Overall, while Avery Dennison Corp has demonstrated a consistently strong ROA over the years, it is essential to carefully monitor future financial performance to ensure sustained profitability and efficiency in asset utilization.
Peer comparison
Dec 31, 2024