Avery Dennison Corp (AVY)
Solvency ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-capital ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-equity ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| 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 |
Avery Dennison Corp's solvency ratios show a consistently low level of debt relative to its assets, capital, and equity over the period under review.
The Debt-to-assets ratio remains at 0.00 throughout the period, indicating that the company has not relied on debt to finance its assets. This suggests a strong financial position as the company's assets are primarily funded through equity.
Similarly, the Debt-to-capital ratio remains at 0.00, indicating that the company has not used debt to fund its capital structure. This shows a healthy balance between debt and equity in the company's overall financing.
The Debt-to-equity ratio also stays constant at 0.00, suggesting that Avery Dennison Corp's operations are not heavily reliant on debt financing, and the company's shareholders have a significant stake in the business relative to debt holders.
The Financial leverage ratio demonstrates a declining trend, starting at 5.34 in March 2020 and decreasing to 3.62 by December 2024. This indicates that the company has been reducing its reliance on debt over time, leading to a stronger financial position and lower financial risk.
Overall, Avery Dennison Corp's solvency ratios highlight a conservative and prudent approach to managing its financial obligations, maintaining a strong balance sheet with minimal debt levels.
Coverage ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Interest coverage | 9.36 | 9.24 | 9.10 | 7.94 | 7.48 | 7.34 | 8.35 | 10.88 | 12.88 | 14.16 | 14.09 | 14.50 | 15.14 | 16.19 | 16.54 | 13.36 | 11.71 | 10.64 | 9.90 | 11.09 |
The interest coverage ratio of Avery Dennison Corp has shown fluctuations over the period from March 2020 to December 2024. The interest coverage ratio, which measures the company's ability to pay its interest expenses with its earnings before interest and taxes (EBIT), started at a relatively healthy level of 11.09 in March 2020.
The ratio then decreased slightly to 9.90 in June 2020 before improving to 11.71 by December 2020. The trend continued positively as the interest coverage ratio increased to 16.54 by June 2021, which indicated a strong ability to cover interest payments.
Subsequently, the ratio declined but remained relatively stable in the range of 14 to 15 until December 2021. However, starting from March 2022, the interest coverage ratio began to show a downtrend, falling to 10.88 by March 2023, indicating a potential strain on the company's ability to cover interest expenses.
This downward trend continued as the interest coverage ratio further decreased to 7.34 by September 2023 and remained around 9 in the following quarters until December 2024. The decreasing trend in the interest coverage ratio may raise concerns about the company's ability to comfortably meet its interest obligations from its operating income.
Overall, the fluctuating interest coverage ratio of Avery Dennison Corp suggests that the company may need to closely monitor and manage its interest expenses relative to its earnings to ensure financial stability and meet its debt obligations in the long term.