Avery Dennison Corp (AVY)
Debt-to-equity ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Long-term debt | US$ in thousands | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 2,127,900 | 2,032,200 | 1,924,400 | 1,484,900 | 1,204,000 |
| Debt-to-equity ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
December 31, 2023 calculation
Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $—K ÷ $2,127,900K
= 0.00
The debt-to-equity ratio for Avery Dennison Corp has consistently been reported as 0.00 for the past five years, indicating that the company has had no financial leverage, as there is no debt in relation to its equity. This could suggest that the company has been funding its operations and growth primarily through equity financing rather than taking on debt. While a low debt-to-equity ratio is generally viewed positively as it signifies lower financial risk and greater financial stability, it is important to note that a ratio of 0.00 could also imply that the company may not be maximizing its capital structure efficiency by utilizing debt to potentially benefit from the tax advantages and leverage that debt can provide. Further analysis of the company's financial strategy and future growth plans would be necessary to fully interpret the implications of this consistent ratio.
Peer comparison
Dec 31, 2023