Avery Dennison Corp (AVY)
Return on equity (ROE)
| 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 stockholders’ equity | US$ in thousands | 2,318,900 | 2,127,900 | 2,032,200 | 1,924,400 | 1,499,900 |
| ROE | 30.40% | 23.64% | 37.26% | 38.46% | 37.06% |
December 31, 2024 calculation
ROE = Net income ÷ Total stockholders’ equity
= $704,900K ÷ $2,318,900K
= 30.40%
Avery Dennison Corp's Return on Equity (ROE) has shown some fluctuations over the years based on the provided data.
In 2020, the ROE was reported at 37.06%, indicating that for every dollar of shareholders' equity, the company generated a return of 37.06%. The ROE slightly improved to 38.46% by the end of 2021, reflecting positively on the company's efficiency in utilizing shareholders' funds to generate profits.
However, in 2022, the ROE decreased to 37.26%, though still remaining at a relatively high level compared to industry averages. This decrease may raise concerns about the company's profitability and efficiency in that specific year.
The trend continued in 2023 with an ROE of 23.64%, which marked a significant drop from the previous years. This decline could be attributed to various factors such as a decrease in net income or an increase in shareholders' equity.
By the end of 2024, Avery Dennison Corp managed to improve its ROE to 30.40%, indicating a recovery in the company's ability to generate profits from shareholders' investments.
Overall, Avery Dennison Corp's ROE has shown variability over the years, with fluctuations that may require further investigation to understand the underlying reasons and their potential impact on the company's financial performance and shareholder value.
Peer comparison
Dec 31, 2024