Avery Dennison Corp (AVY)
Financial leverage ratio
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 8,405,100 | 8,451,900 | 8,298,200 | 8,255,200 | 8,209,800 | 8,133,100 | 8,266,300 | 8,222,300 | 7,950,500 | 8,042,300 | 8,092,400 | 8,138,800 | 7,971,600 | 7,967,700 | 6,422,500 | 6,273,200 | 6,098,900 | 5,720,800 | 5,651,700 | 6,260,900 |
| Total stockholders’ equity | US$ in thousands | 2,318,900 | 2,393,900 | 2,287,100 | 2,204,000 | 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 | 1,499,900 | 1,334,600 | 1,213,900 | 1,173,400 |
| Financial leverage ratio | 3.62 | 3.53 | 3.63 | 3.75 | 3.86 | 3.94 | 4.10 | 4.02 | 3.91 | 4.01 | 4.18 | 4.21 | 4.14 | 4.43 | 3.77 | 3.97 | 4.07 | 4.29 | 4.66 | 5.34 |
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 a declining trend over the past few years, indicating a decreasing reliance on debt to finance its operations. The ratio decreased from 5.34 as of March 31, 2020, to 3.62 as of December 31, 2024. This suggests that the company has been able to reduce its debt levels relative to its equity, which can improve its financial stability and reduce potential risks associated with high leverage. However, it is important to monitor this ratio closely in future periods to ensure the company maintains a healthy balance between debt and equity in its capital structure.
Peer comparison
Dec 31, 2024