Avery Dennison Corp (AVY)
Solvency ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 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 | 3.86 | 3.94 | 4.10 | 4.02 | 3.91 | 4.01 | 4.18 | 4.21 | 4.14 | 4.43 | 3.77 | 3.97 | 4.10 | 4.29 | 4.66 | 5.34 | 4.56 | 5.05 | 5.07 | 5.40 |
Avery Dennison Corp has consistently maintained a low level of leverage based on the solvency ratios provided. The debt-to-assets, debt-to-capital, and debt-to-equity ratios have consistently remained at 0.00, indicating that the company has not utilized debt to finance its operations in the periods analyzed.
However, the financial leverage ratio has ranged between 3.77 and 5.40 over the past five years. This ratio indicates that for every dollar of equity, the company has had between $3.77 and $5.40 of total assets. The increasing trend in the financial leverage ratio since 2019 suggests that Avery Dennison Corp has been gradually using more debt to fund its operations or capital expenditures relative to its equity.
Overall, despite the increase in the financial leverage ratio, Avery Dennison Corp remains relatively conservative in its use of debt, which can be seen as a positive indicator of the company's financial stability.
Coverage ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Interest coverage | 6.84 | 6.92 | 8.35 | 10.88 | 12.88 | 14.16 | 14.07 | 14.46 | 15.08 | 16.19 | 16.35 | 13.18 | 11.48 | 9.92 | 9.28 | 10.49 | 4.26 | 3.29 | 3.25 | 2.68 |
The interest coverage ratio for Avery Dennison Corp has shown a generally improving trend over the past few quarters. The ratio has been consistently above 1, indicating that the company's operating income is more than sufficient to cover its interest expenses. This is a positive sign, as it suggests that Avery Dennison has a strong ability to meet its interest obligations from its earnings.
Looking at the specific values, the interest coverage ratio ranged from 6.84 to 16.19 over the past several quarters. The higher ratios in the range, such as 16.19, indicate that the company can cover its interest payments over 16 times from its operating income. This demonstrates a strong financial position and indicates that Avery Dennison has a healthy ability to service its debt.
Overall, the trend of increasing interest coverage ratios is a positive signal for investors and creditors, indicating improved financial health and reduced risk of default due to insolvency. However, it is important to continue monitoring this ratio to ensure that Avery Dennison maintains its ability to meet its interest obligations in the future.