Avery Dennison Corp (AVY)
Return on equity (ROE)
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Net income (ttm) | US$ in thousands | 503,000 | 482,800 | 566,000 | 680,100 | 757,100 | 816,900 | 759,500 | 728,800 | 740,100 | 748,900 | 735,300 | 631,200 | 555,900 | 526,900 | 521,000 | 584,700 | 303,600 | 238,200 | 243,100 | 195,300 |
| Total stockholders’ equity | US$ in thousands | 2,127,900 | 2,063,600 | 2,015,200 | 2,042,900 | 2,032,200 | 2,007,300 | 1,936,900 | 1,932,500 | 1,924,400 | 1,799,200 | 1,703,600 | 1,581,900 | 1,484,900 | 1,334,600 | 1,213,900 | 1,173,400 | 1,204,000 | 1,057,400 | 1,062,500 | 991,900 |
| 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% |
December 31, 2023 calculation
ROE = Net income (ttm) ÷ Total stockholders’ equity
= $503,000K ÷ $2,127,900K
= 23.64%
Avery Dennison Corp's return on equity (ROE) has fluctuated over the past few years, ranging from as low as 19.69% in March 2019 to a peak of 49.83% in March 2020. The ROE was relatively stable around the high 30% range in 2021 but experienced a noticeable increase in early 2022, reaching 40.70% in September 2022.
The trend continued with ROE peaking at 43.16% in June 2021 before declining slightly in the following quarters. However, the ROE rebounded strongly in 2023, surging to 33.29% in March and further increasing to 28.09% in June. This upward momentum shows a positive trend in the company's profitability and efficiency in generating return on shareholders' equity.
Overall, Avery Dennison Corp's ROE trend indicates that the company has been able to effectively utilize its equity to generate profits, with some fluctuations but generally maintaining a healthy ROE ratio above 20% in recent years. This suggests that the company has been successful in delivering value to its shareholders through effective management of its assets and capital structure.
Peer comparison
Dec 31, 2023