Avery Dennison(Avy) Financials: Fixed Asset Turnover Compared To Industry Average, Plus Other Key Ratios
Growth Trend (Last 5 Years)
Growth - fixed asset turnover
This chart shows the historical trend of fixed asset turnover for AVY compared to its industry average over the recent years.
Ratio Definition and Interpretation
Name: Fixed Asset Turnover
Definition: Fixed asset turnover shows how well the company’s long-term physical assets — factories, equipment, property — are being used to generate sales. A high ratio means the company’s facilities are productive and efficient. A low ratio might signal underused assets or over-investment in equipment that isn’t driving enough sales.
Interpretation:
• In '2021', AVY's fixed asset turnover was 5.69, illustrating how efficiently fixed assets are generating revenue. Industry average for Containers/Packaging in '2021' stood at 2.46.
• In '2022', AVY's fixed asset turnover was 5.99, illustrating how efficiently fixed assets are generating revenue. The increase since '2021' reflects strengthening financial performance. Industry average for Containers/Packaging in '2022' stood at 2.68. Industry average increased by 0.22 compared to previous year.
• In '2023', AVY's fixed asset turnover was 5.28, illustrating how efficiently fixed assets are generating revenue. The decline from '2022' may indicate some operational or financial challenges. Industry average for Containers/Packaging in '2023' stood at 2.49. Industry average declined by 0.19 from previous year.
• In '2024', AVY's fixed asset turnover was 5.45, illustrating how efficiently fixed assets are generating revenue. The increase since '2023' reflects strengthening financial performance. Industry average for Containers/Packaging in '2024' stood at 2.21. Industry average declined by 0.28 from previous year.
Overall, AVY's fixed asset turnover has consistently declined during the past 4 years.
Formula: Fixed Asset Turnover = Net Sales / Net Fixed Assets
Good Range: Ranges from 1 to 5 depending on asset intensity.