Avery Dennison Corp (AVY)
Financial leverage ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 8,405,100 | 8,209,800 | 7,950,500 | 7,971,600 | 6,098,900 |
| Total stockholders’ equity | US$ in thousands | 2,318,900 | 2,127,900 | 2,032,200 | 1,924,400 | 1,499,900 |
| Financial leverage ratio | 3.62 | 3.86 | 3.91 | 4.14 | 4.07 |
December 31, 2024 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $8,405,100K ÷ $2,318,900K
= 3.62
The financial leverage ratio of Avery Dennison Corp has shown fluctuations over the past five years. It stood at 4.07 as of December 31, 2020, and increased to 4.14 by the end of 2021. However, in the subsequent years, the ratio started to decline, reaching 3.62 as of December 31, 2024. This indicates that the company has been progressively reducing its reliance on debt to finance its operations and investments. A decreasing trend in the financial leverage ratio could imply improved financial stability and decreased risk of financial distress. Overall, the declining trend in the financial leverage ratio suggests that Avery Dennison Corp has been effectively managing its debt levels over the past five years.
Peer comparison
Dec 31, 2024