Avery Dennison Corp (AVY)
Return on total capital
| 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 interest and tax (EBIT) (ttm) | US$ in thousands | 813,700 | 774,100 | 852,200 | 988,800 | 1,083,400 | 1,155,300 | 1,102,900 | 1,064,400 | 1,058,900 | 1,065,300 | 1,036,400 | 888,100 | 803,600 | 716,100 | 701,900 | 787,800 | 322,700 | 244,100 | 227,800 | 173,800 |
| Long-term debt | US$ in thousands | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| 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 |
| 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% |
December 31, 2023 calculation
Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $813,700K ÷ ($—K + $2,127,900K)
= 38.24%
The return on total capital for Avery Dennison Corp has shown variability over the past few quarters. From March 2019 to December 2023, the return on total capital has fluctuated between 17.52% and 67.14%. There was a general increasing trend from March 2019 to March 2020, where the return on total capital increased steadily. However, from March 2020 to December 2023, there was more volatility in the ratio, with some quarters showing significant jumps in the return on total capital.
Overall, the return on total capital for Avery Dennison Corp has been relatively high, with most quarters showing returns above 50%. This indicates that the company has been effectively utilizing its capital to generate profits for its shareholders. However, the fluctuations in the ratio suggest that there may be factors impacting the company's ability to consistently generate high returns on its total capital. Further analysis of the company's financial performance and business operations would be needed to understand the drivers behind these fluctuations.
Peer comparison
Dec 31, 2023